TSX Ends Moderately Lower

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index settled with a loss of 200.12 points or 0.79% at 25,128.24, the day's low. The index touched a high of 25,417.52 at the start.

Macro Update: Data from Statistics Canada showed Canada's current account deficit widened to C$ 5.0 billion in Q4 2024, up from an upwardly revised C$ 3.6 billion in Q3.

Another report from Statistics Canada said average weekly earnings of non-farm payroll employees in Canada rose by 5.8% year-on-year to $1,290.82 in December 2024, the most since March 2021, following a 5.0% year-over-year increase in November.

Top Movers: Kinaxis gained 5.2%. E-L-Financial Corporation, Stella-Jones, iA Financial Corporation, Restaurant Brands International, First Quantum Minerals, ATS Corporation, Pembina Pipeline Corporation, Colliers International and Franco-Nevada Corporation advanced 1 to 4.3%.

Our Stance: Investors should closely monitor the key support level at 24,900, a historically significant threshold. Holding above this level could support a potential rebound, while a break below it may lead to further declines, with additional support zones around 24,700 to 24,500. A breach of these levels could signal a deeper correction and a shift in market sentiment.

Commodity Update: The U.S. dollar gained safe-haven support on Friday amid looming tariffs from President Donald Trump. However, it was still on track for a monthly loss as investors balanced these threats with concerns over a weakening U.S. economy. In commodity markets, gold slipped 0.38% to $2,884.80, silver fell 2.18% to $31.56, and copper dropped 0.27% to $9,389.50. Brent crude oil also declined 0.40% to $73.26, heading for its first monthly loss since November. The drop in oil prices reflected concerns about global economic growth and fuel demand amid U.S. tariff threats and signs of a slowing economy.

Technical Update: On Thursday, the S&P/TSX Composite Index dropped by 200.12 points, or 0.79%, finishing at 25,128.24. The decline was mainly driven by a 1.22% drop in the Technology sector, which negatively impacted overall market sentiment. The index remains below its 21-period Simple Moving Average (SMA), signaling a continuation of the short-term downtrend. Additionally, the Relative Strength Index (RSI) is at 43.87, indicating underlying weakness and the possibility of further declines if selling pressure continues. Investors should closely monitor the key support level at 24,900, a historically significant threshold. Holding above this level could support a potential rebound, while a break below it may lead to further declines, with additional support zones around 24,700 to 24,500. A breach of these levels could signal a deeper correction and a shift in market sentiment.