Canadian stocks closed incrementally lower on Friday

                                                           Source: Krish Capital Pty Ltd

Index Update:

The benchmark S&P/TSX Composite Index advanced to an intraday high of 29,864.19 in early trading before losing momentum and pulling back near the unchanged line. The index eventually ended the day up by 29.30 points (or 0.10%) at 29,761.28.

Macro Update:

A preliminary estimate released by Statistics Canada today revealed that Canadian real GDP was essentially unchanged from the previous month in August.

Statistics Canada said increases in wholesale and retail trade were offset by decreases in mining, quarrying, and oil and gas extraction, manufacturing, and transportation and warehousing.

The report also said real GDP grew 0.2% in July after edging down 0.1% in June. The first increase in four months was predominantly driven by expansion in the goods-producing industries, Statistics Canada said.

Canadian GDP shrunk in the second quarter by 1.6% annualized. Two consecutive quarters of contraction are technically considered a "recession."

Top Movers:

Among the individual stocks, Aya Gold and Silver Inc (13.30%), Blackberry Ltd (6.49%), Iamgold Corp (5.04%), Pan American Silver Corp (4.13%), and Brookfield Infra Partners LP Units (4.91%) were the prominent gainers.

Our Stance:

At present, the index is consolidating around a key support area near 29,500. Holding above this level will be crucial to sustaining investor confidence and the broader uptrend. However, a decisive break below 29,500 could signal fading bullish momentum and trigger a pullback, with immediate supports at 29,300 and 29,100 likely to limit deeper downside.

Commodity Update:

The dollar eased on Monday ahead of upcoming U.S. economic releases that may clarify the Federal Reserve’s rate direction, while concerns about a potential government shutdown intensified. Gold gained 0.38% to $3,820.00, silver rose 0.23% to $46.76, and copper advanced 0.70% to $10,283.50. Brent crude fell 0.90% to $69.50 after Iraq’s Kurdistan restarted exports via Turkey and OPEC+ prepared for a fresh output increase in November.

Technical Update:

On Friday, the S&P/TSX Composite Index climbed 29.30 points (+0.10%) to close at 29,761.28, backed by strong trading volumes that highlighted investor confidence and reinforced the ongoing bullish momentum. Technically, the index retains a solid upward structure, trading well above its 21-period Simple Moving Average (SMA), which continues to provide dynamic support. Momentum indicators also point to strong buying pressure, with the Relative Strength Index (RSI) at 80.13, reflecting overbought yet resilient conditions. At present, the index is consolidating around a key support area near 29,500. Holding above this level will be crucial to sustaining investor confidence and the broader uptrend. However, a decisive break below 29,500 could signal fading bullish momentum and trigger a pullback, with immediate supports at 29,300 and 29,100 likely to limit deeper downside.