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Index Update: The benchmark S&P/TSX Composite Index ended with a solid gain of 334.95 points or 1.31% at 25,808.25. The index scaled a fresh record high of 25,875.61 in the session.
Macro Update:Data from Statistics Canada said average weekly earnings of non-farm payroll employees in Canada rose by 5% year-on-year to $1,285.91 in November 2024, the most in five months, following an upwardly revised 4.2% growth in October.
Top Movers: Sangoma Technologies (STC.TO) rallied 5.5%. CGI Group (GIB.A.TO), Bitfarms (BITF.TO), Open Text Corp (OTEX.TO), Shopify Inc (SHOP.TO), Coveo Solutions (CVO.TO) and Lightspeed Commerce (LSPD.TO) gained 2 to 4.1%.
Our Stance: From a technical perspective, the index remains in a favorable position, trading above its 21-period Simple Moving Average (SMA), which is indicative of a bullish trend. Currently, the index is testing a crucial support level around 25,400. The ability to maintain this level is important for sustaining the upward momentum. A breach below 24,800 could signal a retracement risk, with key support levels on the weekly chart identified as around 25,200 to 25,000.
Commodity Update: On Friday, tariff concerns drove the dollar and gold prices up. U.S. economic growth data for Q4 showed a slowdown yet remained strong enough for investors to anticipate gradual interest rate cuts by the Federal Reserve this year. The market is now awaiting the December U.S. personal consumption expenditures (PCE) price index report, a key inflation measure for the Fed. In commodity markets, gold rose 0.13% to $2,848.90, silver gained 0.58% to $32.68, while copper dropped 0.25% to $9,099.00. Brent crude rose 0.21%, closing at $76.33 amid tariff threats affecting U.S. imports from Mexico and Canada.
Technical Update: On Thursday, the S&P/TSX Composite Index posted a modest gain, advancing 334.95 points to close at 25,808.25 marking an increase of 1.31%. This positive performance was supported by strong trading volumes, reflecting sustained investor enthusiasm and confidence in the market. A standout contributor to the day's gains was the technology sector, which rose by 3.45%, suggesting growing optimism in this space. From a technical perspective, the index remains in a favorable position, trading above its 21-period Simple Moving Average (SMA), which is indicative of a bullish trend. The Relative Strength Index (RSI) stands at 68.20, signaling strength in the market but without reaching overbought conditions, leaving room for further gains. Currently, the index is testing a crucial support level around 25,400. The ability to maintain this level is important for sustaining the upward momentum. A breach below 24,800 could signal a retracement risk, with key support levels on the weekly chart identified as around 25,200 to 25,000. For the bullish trend to remain intact, it is essential for the index to hold above these support levels, ensuring continued growth potential in the near term.