Canadian stocks opened higher and maintained a strong standing until late morning on Friday, before retreating and ultimately closing the day's session on a weaker note. This movement was largely influenced by investors reacting to quarterly earnings reports.
The S&P/TSX Composite Index, Canada's primary stock market index, rose to an intra-day record high of 22,470.27 in early trades. However, it closed the day down by 66.90 points, or 0.3%, at 22,308.93, just slightly higher than the session's low of 22,298.67. Nonetheless, the index achieved a weekly gain of about 1.7%.
Among the companies that ended lower were Docebo Inc, which dropped by 23.3%; Shopify Inc, which declined by 5.6%; and BlackBerry, which decreased by 3.4%. Other companies such as Constellation Software, Quarterhill, and Lightspeed Commerce also fell sharply.
In the energy sector, Baytex Energy declined by 8%, while Precision Drilling Corporation, Tourmaline Oil Corp, Vermilion Energy, Parex Resources, MEG Energy, Paramount Resources, and Canadian Natural Resources also fell significantly.
However, consumer staple companies Jamieson Wellness and Metro Inc saw gains of 4.2% and 1.9% respectively.
Data from Statistics Canada indicated a significant employment increase in Canada, with a rise of 90,400 jobs in April 2024—representing the most substantial increase in 15 months—after a decrease of 2,200 jobs in March 2024. Meanwhile, the country's unemployment rate held steady at 6.1%, the same rate observed in the previous month. Average Hourly Earnings in Canada also rose, increasing by C$1.64 from the previous year to C$35.77 in April 2024, following a 5% hike in March.
Areas of decline included technology and energy stocks, while stocks in consumer staples, healthcare, and consumer discretionary saw some support.
In corporate news, Algonquin Power & Utilities Corp reported a significant first-quarter net loss to shareholders of $89.1 million, a sharp contrast to last year's profit of $270.1 million. Meanwhile, Enbridge Inc reported an 8% per-share increase in adjusted earnings compared to 2023, accumulating $2.0 billion or $0.92 per share.
Moreover, Onex Corporation indicated a notable shift from a net loss of $232 million in the year-ago quarter to a net profit of US$10 million for the first quarter of this year. Conversely, Crescent Point Energy reported a net loss of $411.7 million for the quarter ending March 31, 2024, as opposed to a net profit of $216.7 million a year ago.
Finally, CI Financial Corp reported an adjusted net income of $132.8 million for the first quarter of 2024, which marked a drop from $136.8 million in the first quarter of 2023.
