TSX Ends 1.6% Down

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index closed down 401.91 points or 1.6% at 24,759.15, almost near the day's low. The index shed about 0.8% in the week.

Macro Update: Data from Statistics Canada said the Canadian GDP was essentially unchanged from the previous month in February of 2025, according to a flash estimate. In turn, the GDP expanded by 0.4% from the previous month in January, extending momentum in December and better than flash estimates of 0.3%.

Canada's finance department said Canada's government budget recorded a deficit of C$ 5.13 billion in January 2025, widening from a C$ 2.06 billion deficit in January 2024.

Top Movers: Jamieson Wellness climbed up 3.7%. Emera Inc., Atco, Oceanagold, Great-West Lifeco, Canadian Utilities, Fortis Inc., Dollarama and Gibson Energy gained 1 to 2%.

Our Stance: The index remains below its 21-period Simple Moving Average (SMA), reinforcing the prevailing downtrend and indicating persistent selling pressure. The key support level to watch is 24,600, aligning with a crucial horizontal trendline. Holding this level could provide a base for stabilization and potential recovery.

Commodity Update: The dollar fell, while gold surged above $3,100 per ounce for the first time, driven by concerns over U.S. President Donald Trump’s tariffs and geopolitical tensions, prompting a flight to safe-haven assets. Gold rose 0.83% to $3,140.80, silver gained 0.58% to $35.08, and copper dipped 0.38% to $9,766.55. Brent oil dropped 0.20% to $73.52 per barrel after Chinese media reported major reserves in the South China Sea, easing supply fears. Crude prices fell after three weeks of gains, impacted by worries over potential U.S. sanctions on Russia amid slowing global growth.

Technical Update: On Friday, the S&P/TSX Composite Index dropped 401.91 points (-1.60%) to close at 24,759.15, driven primarily by weakness in the technology sector, which declined 2.98%, weighing on overall market sentiment. The index remains below its 21-period Simple Moving Average (SMA), reinforcing the prevailing downtrend and indicating persistent selling pressure. Momentum indicators suggest a cautious outlook, with the Relative Strength Index (RSI) at 45.52, signaling bearish sentiment. While a short-term rebound is possible, downside risks remain. The key support level to watch is 24,600, aligning with a crucial horizontal trendline. Holding this level could provide a base for stabilization and potential recovery. However, a break below may accelerate losses, with further downside targets at 24,300 and 24,100. Market sentiment remains fragile as investors closely monitor macroeconomic developments and sector performance for further direction.