The Canadian stock market reached a new peak on Wednesday, but ended the day with only a slight increase, as declines in the energy and consumer discretionary sectors overshadowed advances in the technology and industrials sectors. The overall investor sentiment was cautious, as market participants evaluated earnings reports from major banks and assessed economic data, while also anticipating the upcoming U.S. non-farm payroll report.
The S&P/TSX Composite Index achieved a new intraday high of 25,743.53 during early trading, but subsequently fell to a low of 25,573.61, ultimately closing the session at 25,641.18, a rise of only 0.02%, or 5.45 points.
Leading the gains, Hut 8 Corp (HUT.TO) surged nearly 8%. Other notable performers included Spin Master Corp (TOY.TO), MDA Space (MDA.TO), Descartes Systems Group (DSG.TO), Winpak (WPK.TO), and Guardian Capital Group (GCG.TO), all of which advanced between 3% and 5%.
Several companies closed with 2% to 3% increases: Capital Power Corporation (CPX.TO), TerraVest Industries (TVK.TO), Kinaxis Inc (KXS.TO), Thomson Reuters (TRI.TO), Atkins Realis (ATRL.TO), Stella-Jones (SJ.TO), Premium Brands Holdings Corporation (PBH.TO), WSP Global (WSP.TO), and Stantec (STN.TO).
The Royal Bank of Canada (RY.TO) reported a net income of $16.2 billion for the fiscal year ending October 31, 2024, marking an 11% increase over the previous year, leading to a modest rise in its stock.
In contrast, the National Bank of Canada (NA.TO) saw a significant dip, closing nearly 4% lower despite reporting an adjusted profit increase for the quarter ending October 31, with earnings of C$928 million, or C$2.58 per share, up from C$850 million, or C$2.39 per share, the previous year.
Dollarama Inc (DOL.TO) experienced a decline of over 5% despite reporting an increase in net earnings by 5.6% to $275.8 million in the third quarter of fiscal 2025, compared to $261.1 million in the same period of fiscal 2024, with diluted net earnings per common share rising by 6.5% to $0.98 per share.
Coveo Solutions (CVO.TO) plummeted over 11%, while Quebecor Inc (QBR.TO) closed down by 9.4%. Other declines were seen in Tenaz Energy (TNZ.TO), Canadian Western Bank (CWB.TO), Precision Drilling Corporation (PD.TO), Canadian Natural Resources (CNQ.TO), Ero Copper (ERO.TO), Cenovus Energy (CVE.TO), Tourmaline Oil Corp (TOU.TO), Imperial Oil (IMO.TO), and MEG Energy Corp (MEG.TO), which all lost between 2% and 4.3%.
In macroeconomic news, data from S&P Global indicated that the S&P Global Canada Composite PMI rose to 51.5 in November 2024, up from 50.7 in October, representing the fastest private sector growth since May 2022 and a second consecutive month of expansion. The S&P Global Canada Services PMI also increased, reaching 51.2 in November 2024, its highest level since April 2023, up from 50.4 the previous month. However, the services sector's growth remained modest, with new business largely unchanged since October.
Statistics Canada reported a decline in Canadian productivity, falling to 101.37 points in the third quarter of 2024 from 101.77 points in the second quarter of 2024.
