Canadian stocks showcased strong performance on Friday as investors actively invested in various sectors. This wave of active buying was influenced by rising market trends in U.S. and European markets. Bay Street also reflected a positive atmosphere, based on expectations of interest rate cuts by the Federal Reserve and other central banks, including the European Central Bank.
Steady crude oil and bullion prices prompted robust buying in the energy and materials sectors. Other notable gainers included the technology, healthcare, and real estate sectors.
The benchmark S&P/TSX Composite Index closed with a gain of 188.74 points or 0.88%, nearing a two-year closing high of 21,552.35. The index reported a weekly gain of approximately 0.65%.
Economic data reported a contraction in manufacturing activity for the tenth consecutive month in February. However, the rate of contraction was the slowest recorded during this period. The S&P Global Canada Manufacturing PMI rose to 49.7 in February, from 48.3 in the prior month.
Healthcare stocks like Bausch Health Companies and Chartwell Retirement Residences showed gains of around 5% and 1.9%, respectively. Energy stocks such as Kelt Exploration, Precision Drilling Corporation, Tamarack Valley Energy, Shawcor, Canadian Natural Resources, International Petroleum Corp, and Suncor Energy gained between 3-4%.
The Materials Index's leading gains included New Gold Inc, which surged by nearly 10%. Oceanagold Corp and Equinox Gold Corp also advanced by 8.5% and 7.25%, respectively. Other significant gainers included Fortuna Silver Mines, Torex Gold Resources, Sandstorm Gold, B2Gold Corp, and Osisko Mining, which surged between 6-7%.
In the technology sector, Tecsys Inc surged almost 9%. Other notable advances included Celestica Inc, Kinaxis Inc, and Hut 8 Corp, which climbed by 6.4%, about 6%, and 5.1% respectively. Additional gainers included Descartes Systems, Open Text Corp, Constellation Software, and Bitfarms, with gains ranging between 1.8-2.2%.
SNC Lavalin Inc shares soared 11.5% following an announcement of the company's fourth-quarter adjusted net income of $79.5 million. This was a major turnaround as compared to their adjusted net loss of $32.5 million in Q4 2022. Ensign Energy Services Inc surged 14% after announcing its net income for 2023 as $41.2 million, a substantial rise from $8.1 million in 2022.
