Canadian Stocks Close Roughly Flat

Image Source : Krish Capital Pty Ltd

Index Update:  Canadian stocks changed little on Monday. After opening higher than last week's close, the benchmark S&P/TSX Composite Index inched up slowly to reach an intra-day high of 27,448.51 in a couple of hours. However, falling from there, the index continued its slide to finally settle at 27,317.00, up by just 2.99 (or 0.01%).

Macro Update:  The Canadian Prime Miniter initiated talks with the Chiefs of First Nations to allay their fears on the proposed Building Canada Act (Bill C-5) which gives the government, powers to bypass government regulations and environmental assessments to promote big-scale industrial projects in the interest of the nation. He also announced that he is cutting down the taxes for families across Canada to help them save up to $840 a year. Data released by Statistics Canada revealed that industrial producer prices rose 0.4% month-over-month in June, bouncing back from two consecutive declines. The index rose 1.7% year-over-year in June 2025.

Top Movers:  Major sectors that gained in today's trading were Materials (2.30%), Utilities (0.60%), Communication Services (0.57%), and Real Estate (0.35%). Among the individual stocks, Novagold Res Inc (8.96%), Centerra Gold Inc (7.19%), Fortuna Mines Inc (6.60%), and Boralex Inc (3.75%) were the prominent gainers.

Our Stance:  Currently, the index is testing a critical support level near 27,000. Holding above this threshold is crucial to sustain bullish bias. A decisive drop below this level could trigger a correction, with the next support zones seen at 26,700 and 26,500.

Commodity Update:  The dollar remained range-bound Tuesday after an early-week dip, as investors awaited developments in trade talks before the August 1 tariff deadline. Gold edged down 0.11% to $3,402.60, silver slipped 0.54% to $39.11, and copper fell 0.32% to $9,841.10. Brent crude eased 0.35% to $68.97 amid concerns that escalating trade tensions between the U.S. and the EU could dampen fuel demand and slow economic growth.

Technical Update: 

On Monday, the S&P/TSX Composite Index edged up by 2.99 points to close at 27,317.00, posting a marginal gain of 0.01%. This slight uptick reflects continued investor confidence and active market participation, particularly within the basic materials sector, which outperformed with a 2.27% increase. Despite the day’s gain, the index’s technical outlook remains cautious, as it continues to trade well below its 21-period Simple Moving Average (SMA), sustaining its negative momentum. The Relative Strength Index (RSI) stands at 67.88, indicating that the market is in a healthy zone but approaching overbought territory, which raises the possibility of a short-term pullback. Currently, the index is testing a critical support level near 27,000. Holding above this threshold is crucial to sustain bullish bias. A decisive drop below this level could trigger a correction, with the next support zones seen at 26,700 and 26,500.