Canadian stocks posted incremental gains on Friday

Index Update:  After opening just, a little above yesterday's close, the benchmark S&P/TSX Composite Index remained volatile throughout the session before settling at 33,040.55, up by 11.63 points (or 0.04%).

Macro Update:  After meeting Chinese President Xi Jinping during his four-day visit to China, both the leaders announced that China will lower the levies on Canola oil from Canada to 15% (currently 85%) by March 1, while Canada agreed to import around 49,000 electric vehicles from China at a reduced tariff of 6.1%, thereby rendering the "most-favored nation" status to China. Both nations have signed multiple deals on trade and energy sectors, with China agreeing to grant visa-free access to Canadian visitors. Challenged with the need to diversify away from the U.S. without hurting Trump, Carney is heading to Qatar from China, and then to Switzerland to attend the World Economic Forum. In Canada today, data released by Canada Mortgage and Housing Corporation revealed that housing starts rose by 11% from the previous month to a seasonally adjusted 282,439 in December 2025.

Top Movers:  Among the individual stocks, Headwater Exploration Inc (3.70%), Prairiesky Royalty Ltd (2.85%), Mda Ltd (14.52%), and Granite Real Estate Inc (2.76%) were the prominent gainers.

Our Stance: Price action is stabilising near the critical 32,900 support zone, which continues to act as an important floor for the index. Sustained trading above this level is essential to preserve positive sentiment. However, a decisive break below 32,900 could weaken momentum and trigger a corrective move toward the 32,700–32,600 range.

Commodity Update:  The dollar weakened on Monday as markets turned risk-averse following fresh tariff threats from U.S. President Donald Trump linked to Europe and Greenland. Safe-haven demand lifted the yen and Swiss franc. Gold surged 1.72% to USD 4,674.70, silver jumped 5.53% to USD 93.44, and copper rose 1.25% to USD 12,965.00. Brent crude was steady at USD 64.10 amid lingering Iran supply concerns.

 Technical Update:

On Friday, the S&P/TSX Composite Index edged higher by 11.63 points, or 0.04%, to close at 33,040.55. Although the gain was modest, it was supported by healthy trading volumes, highlighting continued investor participation and confidence in the prevailing market trend. From a technical perspective, the index remains firmly positioned above its 21-period Simple Moving Average (SMA), reinforcing the strength of the short-term uptrend and suggesting that bullish momentum is still intact. The 14-period Relative Strength Index (RSI) is currently at 73.50, reflecting strong buying interest while staying just below extreme overbought territory. This indicates that momentum remains positive, though traders should be mindful of potential near-term consolidation. Price action is stabilising near the critical 32,900 support zone, which continues to act as an important floor for the index. Sustained trading above this level is essential to preserve positive sentiment. However, a decisive break below 32,900 could weaken momentum and trigger a corrective move toward the 32,700–32,600 range.