Canadian Stocks Closed Quietly on Thursday

Image Source : Krish Capital Pty Ltd

Index Update:

The S&P/TSX Composite Index showed a downside of 0.19% to 24,795.55 on Thursday, weighed down by losses in major Materials, Telecoms and Consumer Staples sectors, though gains in tech and energy shares broadly offset the pressure.

Macro Update:

Canada's manufacturing sector contracted for the third straight month in April 2025, with the S&P Global Canada Manufacturing PMI dropping to a 5-year low of 45.3, down from 46.3 in March. Businesses attributed this significant downturn in production and new orders, largely to tariffs and the uncertainty surrounding US trade policies, which also caused a dramatic five-year high in the decline of new export orders.

Meanwhile in the US, the latest GDP, private payrolls and weekly jobless claims data pointed to slowing US economic activity, supporting bets on near-term Federal Reserve rate cuts and limiting the dollar’s rally. Investors now turn their attention to the April jobs report which can give investors more insights on how shifting trade policies are affecting the economy.

Top Movers and Losers:

The biggest gainers of the session on the S&P/TSX Composite were Ivanhoe Mines Ltd. (TSX: IVN), which rose 9.89%. Baytex Energy Corp (TSX: BTE) added 6.10% and Aecon Group Inc. (TSX: ARE) was up 5.33%. Biggest losers included Alamos Gold Inc (TSX: AGI), which fell 9.62%. Bombardier Inc (TSX: BBDb) declined 9.42% and Aya Gold & Silver Inc (TSX: AYA) down 8.44%.

Our Stance:

The index experienced a modest pullback. This downturn was largely attributed to a broad-based weakness in the basic materials sector, which fell by a notable 2.02%. From a technical perspective, key support levels are now in focus. The index is currently holding above a near-term support zone at 24,300. Conversely, a decisive break below 24,300 could trigger increased selling pressure, opening the door to a deeper correction.

Commodity Update:

The U.S. dollar is on track for a third weekly gain, buoyed by encouraging trade talks and strong economic data. Gold rose 1.05% to $3,256.00, while silver dipped 1.34% to $32.62. Copper climbed 1.78% to $9,370.20. Brent crude gained 0.60% to $62.51 after China expressed openness to dialogue with the U.S., sparking optimism over easing trade tensions.

Technical Update:

On Thursday, the S&P/TSX Composite Index experienced a modest pullback, declining by 46.13 points, or approximately 0.19%, to settle at 24,795.55. This downturn was largely attributed to a broad-based weakness in the basic materials sector, which fell by a notable 2.02%.  Despite the day’s losses, the index continues to trade comfortably above its 50-period Simple Moving Average (SMA), a key technical indicator that often serves as a dynamic support in trending markets. This position above the 50-SMA suggests that the short-term uptrend remains intact and that the recent dip may be part of a healthy consolidation phase rather than a trend reversal. From a technical perspective, key support levels are now in focus. The index is currently holding above a near-term support zone at 24,300. Conversely, a decisive break below 24,300 could trigger increased selling pressure, opening the door to a deeper correction. In such a scenario, additional support is likely to be found near 24,000, which coincides with a prior consolidation zone, and further down at 23,700, a level that marks the lower boundary of the broader ascending channel observed over recent months.