As of Friday afternoon, the Canadian market remains predominantly positive, seizing considerable profits from the materials and communication sectors. However, despite the market's buoyancy, both the energy and financial shares have seen a decrease from their respective high points, with technology shares similarly experiencing weakness.
This overall optimistic mood is largely due to expectations that the Federal Reserve will likely decrease the interest rate in May or June. The benchmark S&P/TSX Composite Index, which peaked at 21,323.98, has risen by 76.07 points or 0.37%, marking the current rate at 21.298.76.
In the materials sector, Ero Copper leads with a 7.3% increase, followed by Lundin Mining Corporation, Stelco Holdings, and Capstone Mining Corporation, with gains of 5.5%, 4.2%, and 3.6% respectively. Companies like Filo Mining, Agnico Eagle Mines, Lithium Americas Corporation, and Hudbay Minerals also experienced sharp increases.
Contributing to the hike in communication shares are Cogeco Communications, Telus Corporation, Quebecor Inc., and BCE Inc, each posting gains between 1.1% and 1.5%. Also contributing towards the positive market direction are financial entities including Sun Life Financial, Great-West Lifeco, National Bank of Canada, CI Financial Corporation, Laurentian Bank, Power Corporation of Canada, Bank of Nova Scotia, and Royal Bank of Canada, each experiencing an increase between 0.6% and 1.2%.
Meanwhile, in the energy sector, its entities such as Peyto Exploration, Crescent Point Energy, Freehold Royalties, Birchcliff Energy, Paramount Resources, Prairiesky Royalty, Athabasca Oil, and Tourmaline Oil Corporation have all seen both sharp to moderate gains.
Finally, on an economic note, recent data from Statistics Canada highlights a 0.3% month-to-month increase in wholesale sales in Canada, amounting to C$82.9 billion in December 2023, a slowdown from the 0.9% decline experienced the previous month.
