Canadian Stocks Rise Modestly

Image Source : Krish Capital Pty Ltd

Index Update:  After moving notably lower early in the session, the benchmark S&P/TSX Composite Index regained ground over the course of the session and ended the day at a new record closing high of 28,615.62, up by 51.17 points (or 0.18%).

Macro Update:  Domestic growth data released last week gave rise to expectations of a rate cut by Bank of Canada. Notably, GDP for the second quarter of 2025 ended on June 30 contracted by 1.6%. With the current rate remaining at 2.75% since March 2025, Bank of Canada's next "key" interest rate (the overnight rate) announcement is scheduled for September 17.

Top Movers:  Among the individual stocks, Torex Gold Resources Inc (10.98%), Aya Gold and Silver Inc (9.60%), Brp Inc (6.32%), First Majestic Silver Corp (5.49%), Bausch Health Companies Inc (4.13%), and Quarterhill Inc (13.89%) were the prominent gainers.

Our Stance:  Technically, the index retains a bullish structure, trading comfortably above its 21-period SMA. The RSI stands at 73.18, reflecting strong momentum with room for further upside. The index is currently testing key support near 28,400; holding above this level will be crucial to sustain the uptrend. A decisive break lower could trigger a pullback toward the next support levels at 28,200 and 27,900 on the daily chart.

Commodity Update:  The British pound and yen weakened on Wednesday amid renewed concerns over global government finances and political uncertainty in Japan. Precious metals traded mixed, with gold rising 0.15% to $3,597.40, while silver slipped 0.06% to $41.57 and copper eased 0.13% to $9,980.30. Brent crude edged down 0.01% to $69.13, though it maintained sanctions-driven gains as traders awaited the upcoming OPEC+ meeting this weekend for fresh supply cues.

Technical Update:

On Tuesday, the S&P/TSX Composite Index advanced 51.17 points, or 0.18%, to close at 28,615.62, supported by strong trading volumes that underscored continued investor confidence. The healthcare sector outperformed, rising 2.98% on renewed optimism within the space. Technically, the index retains a bullish structure, trading comfortably above its 21-period SMA. The RSI stands at 73.18, reflecting strong momentum with room for further upside. The index is currently testing key support near 28,400; holding above this level will be crucial to sustain the uptrend. A decisive break lower could trigger a pullback toward the next support levels at 28,200 and 27,900 on the daily chart.