TSX Ended on Firm Note

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/TSX Composite Index climbed 1.2% to close at 23,867 on Monday, lifted by broad-based gains in the financial sector. Investor sentiment improved after President Trump announced exemptions for select tech products—including smartphones, laptops, and other electronics—from the newly imposed 145% China-specific and 10% baseline tariffs.

Macro Update: Data from Statistics Canada said new motor vehicles sales in Canada increased to 125,402 Units in February from 121,258 Units in January of 2025.

A separate data from Statistics Canada showed wholesale sales in Canada increased 0.3% month-over-month to $85.7 billion in February.

Top Movers: MAG Silver, First Majestic Silver, Cogeco Communications, B2Gold Corp, Empire Company, Torex Gold Resources, Premium Brands Holdings, Novagold, Lundin Mining, CT Real Estate, Great-West Lifeco and TerraVest Industries are up 2 to 4%.

Our Stance: The broader trend remains cautious. Immediate support is seen at 23,500, a key horizontal level that may provide a near-term floor and spark consolidation or a relief rally. However, a decisive break below this threshold could open the door to a further downside, with additional support levels at 23,000 and 22,800.

Commodity Update: The dollar remained steady on Tuesday but stayed close to recent lows against the euro and yen amid ongoing uncertainty over U.S. tariff changes. Gold rose 0.38% to $3,238.40, while silver slipped 0.12% to $32.20. Copper edged up 0.06% to $9,193.20. Brent crude gained 0.42% to $65.515, supported by possible U.S. tariff exemptions and a rebound in Chinese oil imports ahead of potential Iranian supply cuts.

Technical Update: On Monday, the S&P/TSX Composite Index rallied by 278.73 points to close at 23,866.53, marking a 1.18% gain amid increased investor confidence and heightened trading activity. Leading the advance was the Consumer Non-Cyclicals sector, which posted a notable 2.38% rise. Despite the strong performance, the index continues to trade below its 21-period Simple Moving Average (SMA), indicating persistent downward momentum and underlying selling pressure. The Relative Strength Index (RSI) has declined to 46.03, edging closer to oversold territory and potentially setting the stage for a short-term technical rebound. From a technical perspective, the broader trend remains cautious. Immediate support is seen at 23,500, a key horizontal level that may provide a near-term floor and spark consolidation or a relief rally. However, a decisive break below this threshold could open the door to a further downside, with additional support levels at 23,000 and 22,800.