Stock Exchange Tops Record Again, Enters Seventh Consecutive Week of Weekly Increases
The Toronto Stock Exchange experienced a mixed day of trading on Friday, with energy stocks dropping 1.7%, while gold mining stocks, such as Barrick Gold Corporation, led gains, rising 3.1%. The S&P/TSX composite index added 0.5% to 29,602.19 points, setting it on course for a seventh-consecutive week of gains.
The highest gaining stock of the day was Barrick Gold Corporation, which saw a significant rise of +10.00% in 24 hours. Other notable gainers included Bitfarms Ltd (+5.00%), Blackberry Ltd (+4.70%), and Shopify Inc (+3.03%). However, Orla Mining decreased by 7.1% to $14.18.
In the world of gold mining, Barrick Gold Corporation increased by 6.3%, while Kinross Gold and Endeavour Mining both added over 3%. These gains were driven by a surge in the gold price, which reached its highest level since May 2021.
The retail sector, on the other hand, painted a different picture. Canadian retail sales were disappointing, with data from July showing a 0.8% drop. This has put pressure on the Bank of Canada (BoC) for potential rate cuts. Colin Cieszynski, chief market strategist at SIA Wealth Management, commented, "Valuations have certainly gotten stretched. This isn't an issue specific to Canada. It's more a case of the trend is your friend till it ends."
Despite the retail sales slump, an advanced indicator points to retail sales growth rebounding to 1% in August. This could provide some relief to the struggling sector.
In a move that could impact the stock market, Newmont sold its entire stake for $439 million. The BoC, in response to economic uncertainties, reduced its key policy rate to a three-year low of 2.5% on Wednesday. The Bank is prepared for further cuts if risks to the economy rise.
The S&P/TSX composite index hit a record intra-day high earlier in the session, reflecting the overall bullish sentiment in the market. However, with retail sales disappointing and valuations stretched, the market's trajectory remains uncertain. As Colin Cieszynski warns, "It's more a case of the trend is your friend till it ends."
Read also:
- Potential Consequences of Dismantling FEMA Vary Across States
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
