Canadian stocks soared to fresh record highs on Thursday

Image Source : Krish Capital Pty Ltd

Index Update:  Canadian stocks soared to fresh record highs on Thursday even as investors awaited key jobs data that could influence the Canadian central bank's September interest rate decision. Technology stocks supported today's rally. After opening nearly at yesterday's close, the benchmark S&P/TSX Composite Index turned lower in the early hours but gained momentum to trade firmly positive and hit an intraday high of 28,924.34 and finally settle at 28,915.89, up by 164.53 points (or 0.57%). This is a new record closing high for the index.

Macro Update:  Data released by Statistics Canada today revealed that US imports of goods and services surged by $20.0 billion to $358.8 billion in July (four-month high) amid ongoing tariff uncertainty. Goods imports rose by $18.4 billion, while services imports grew by $1.7 billion. Canada's exports rose 0.9% to C$61.9 billion in July, matching June's growth and marking a third straight monthly increase. Gains were led by energy products. However, exports of metals and minerals fell 8%. The country posted a trade deficit of C$4.9 billion in July 2025. Meanwhile, the S&P Global Canada Composite PMI fell to 48.4 in August from 48.7 in July while the Services PMI Business Activity Index slipped to 48.6 in August from 49.3 in July.

Top Movers:  Among the individual stocks, Descartes Sys (7.04%), Celestica Inc Sv (4.71%), Shopify Inc (3.77%), Computer Modelling Group Ltd (2.49%), Colliers International Group (3.08%) and Gildan Activewear Inc (4.09%) were the prominent gainers.

Our Stance:  The index is testing a key support zone near 28,500, while holding above this level is critical, with additional supports at 28,200 and 28,000 to sustain the uptrend.

Commodity Update:  The dollar steadied on Friday as bond markets calmed, and investors awaited key U.S. jobs data that could strengthen the case for a Fed rate cut. Commodities were mixed: gold edged up 0.07% to $3,609.10, silver rose 0.15% to $41.48, and copper gained 0.45% to $9,935.45. Brent crude fell 0.30% to $66.38, marking its third straight decline ahead of the OPEC+ meeting on potential output hikes.

Technical Update:

The S&P/TSX Composite Index gained 164.53 points on Thursday, closing at 28,915.89, up 0.57%. The broader technical setup remains positive, with the index trading above its 50-period SMA, reinforcing the prevailing bullish momentum. Indicators remain supportive, as the RSI stands elevated at 77.84, signaling strong underlying strength. The index is testing a key support zone near 28,500, while holding above this level is critical, with additional supports at 28,200 and 28,000 to sustain the uptrend.