Canadian Stocks Closed Quietly amid Election

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/TSX Composite Index showed an upside of 0.37% at 24,798.59 on Monday, reaching its highest level over the three weeks led by gains in technology and financials stocks as investor remain cautiously optimistic as Canada approached its general election, with both major parties advocating pro-growth and trade-friendly platforms.

Macro Update: Prime Minister Mark Carney and Conservative leader Pierre Poilievre concluded their campaigns on Sunday, with Liberal Party maintaining a narrow lead in popular support ahead of the final voting.

Canadia Wholesale sales declined by 0.3% MoM in March 2025, reversing 0.3% gain in February. The marks the first decline in seven months, driven by decreased activities in five of the major seven subsectors.

The yield on the US 10-year Treasury note hovered around 4.2% on Tuesday, depicting its lowest levels in three weeks as investors awaited crucial economic data that could reveal the early impact of President Donald Trump’s new tariffs. 

Top Movers and Losers: The best performers of the session on the S&P/TSX Composite were Denison Mines Corp (TSX: DML), with 4.64%. Meanwhile, NexGen Energy Ltd. (TSX: NXE) added 4.40% and Aecon Group Inc. (TSX: ARE) was up 3.25%. The worst performers of the session were Tilray Inc (TSX: TLRY), which fell 5.80%, Lundin Gold Inc (TSX: LUG) declined 3.78%, and First Quantum Minerals Ltd. (TSX: FM) was down 3.08%.

Our Stance: The index remains in a bullish trend, trading above its 21-period Simple Moving Average (SMA), indicating favorable market conditions. The Relative Strength Index (RSI) currently stands at 56.10, suggesting the market retains strength without being overbought, allowing room for potential further upside. The index is now testing a critical support level of around 24,400. Maintaining levels above this threshold is essential for preserving the upward momentum

Commodity Update: The dollar struggled to recover Tuesday as uncertainty lingered over progress in Sino-U.S. trade talks, with Treasury Secretary Scott Bessent stating China must initiate negotiations. Gold slipped 0.63% to $3,326.70, silver edged up 0.02% to $33.00, and copper dipped 0.06% to $9,392.05. Brent crude eased 0.04% to $65.63, pressured by a weak demand outlook and Russia's surprise three-day ceasefire with Ukraine, hinting at possible broader peace efforts.

Technical Update: On Monday, the S&P/TSX Composite Index posted a modest gain, rising by 88.08 points to close at 24,798.59, a 0.36% increase. This upward movement was supported by strong trading volumes, signaling sustained investor confidence and enthusiasm. The technology sector was a key driver of the gains, advancing by 0.72% and reflecting growing optimism in this area. From a technical standpoint, the index remains in a bullish trend, trading above its 21-period Simple Moving Average (SMA), indicating favorable market conditions. The Relative Strength Index (RSI) currently stands at 56.10, suggesting the market retains strength without being overbought, allowing room for potential further upside. The index is now testing a critical support level of around 24,400. Maintaining levels above this threshold is essential for preserving the upward momentum.