Canadian Stocks Closed on Negative Note on Friday

Image Source : Krish Capital Pty Ltd

Index Update: On Friday, the Canadian market fell from the previous day's record high in response to Israel's comprehensive attacks on Iran. The benchmark S&P/TSX Composite Index recovered after an early decline, but fell again as the day progressed, closing down 111.40 points, or 0.4%, at 26,504.35.

Macro Update: In Canadian economic news, separate reports released by Statistics Canada showed manufacturing sales and wholesale sales tumbled by 2.8% and 2.3%, respectively, in April. On the geopolitical front, around 200 Israeli Air Force fighter jets attacked hundreds of nuclear and military targets across Iran. While US President Donald Trump stated that Iran brought on this attack upon itself.

Top Movers: International Petroleum (9.04%), Baytex Energy (4.93%), Suncor Energy (4.70%), Methanex Corp (4.41%), Dundee Precious Metals (4.00%), and Barrick Mining Corp (2.95%) were the prominent gainers. While, Lightspeed Commerce (5.30%), Docebo (4.53%), Celestica Inc. (4.31%), Shopify (3.62%), Magna International (3.19%), and Canadian National Railway (1.50%) were among the notable losers.

Our Stance: From a technical perspective, the index remains comfortably above its 21-period Simple Moving Average (SMA), reinforcing a bullish short-term outlook. The index is approaching a critical support level near 26,200. Sustaining this level is essential for preserving the current upward trend. A decisive drop below it could pave the way for a more pronounced pullback, with key support areas situated between 25,800 and 25,500.

Commodity Update: he dollar strengthened on Monday as escalating Israel-Iran tensions fueled safe-haven demand, with investors cautious ahead of key central bank meetings. Fears of a wider conflict and potential disruption at the Strait of Hormuz—vital for global oil transit—heightened market risk. Gold rose 0.14% to $3,458.00, silver edged up 0.10% to $36.39, and copper gained 0.10%. Brent crude climbed 0.50% to $74.59, extending gains amid rising supply concerns in the Middle East.

Technical Update: On Friday, the S&P/TSX Composite Index declined by 111.40 points, or 0.42%, closing at 26,504.35. The pullback was largely attributed to weakness in the technology sector, which fell 2.38%, weighing heavily on overall market sentiment. Technically, the index remains well above its 21-period Simple Moving Average (SMA), supporting the continuation of its bullish trend. The Relative Strength Index (RSI) is at 67.46, reflecting a healthy market that could accommodate further gains.  The index is approaching a critical support level near 26,200. Sustaining this level is essential for preserving the current upward trend. A decisive drop below it could pave the way for a more pronounced pullback, with key support areas situated between 25,800 and 25,500.