Canadian equity markets saw a prolific performance on Tuesday, driven by uplifting inflation statistics and the softening of tariff policies. The TSX Composite Index substantially grew by 201.4 points, closing Tuesday at 24,067.93. In contrast, the Canadian dollar declined slightly by 0.32 cents, hitting 71.62 cents U.S.
Hints of possible waivers for the severe 25% tariffs on car and auto parts imports sparked optimism amongst investors, reflecting promising signs from several regional fronts. Meanwhile, oil prices saw fairly insignificant fluctuation after news of tariff waivers and a resurgence in Chinese oil imports; although it was counterbalanced by the International Energy Agency readjusting their oil demand estimates downwards.
In the financial sector, power player Brookfield Asset Management experienced an upward surge, gaining 96 cents, or 1.4%, to finish at $68.02. On the other end of the spectrum, Women’s fashion retailer, Groupe Dynamite, marked an impressive 6.3% rise, or 73 cents, ending the day at $12.31. This leap followed a positive reporting of their Q4 results and the declaration of a share repurchase initiative.
The healthcare sector emerged a trendsetter in the day’s gains, with Bausch Health Companies making notable strides. It advanced by 31 cents, or $5.29, closing at $6.32. At the same time, Chartwell Retirement Residences added 51 cents, or 3.2%, to its shares, topping off at $16.59.
Kinaxis and Sylogist Ltd. had their respective shares surge as well. Kinaxis’s share value increased by $6.34, or 3.8%, to land at $172.66. Meanwhile, Sylogist Ltd. saw a climb of 32 cents, or 3.8%, resulting in their shares settling at $8.66.
The buoyancy wasn’t only confined to the healthcare sector; gold stocks experienced a boost too. Sandstorm Gold’s shares went north by 51 cents, or 4.5%, rounding off at $11.74. Lundin Gold scored an ascent of $2.01, or 3.9%, to reach $53.87.
However, not all markets mirrored this bullish trend. Telecommunications behemoths embarked on a downward trajectory, with BCE shedding 36 cents, or 1.2%, to $29.67, and Rogers Communications dunking 17 cents to $34.84.
Moreover, BRP Inc., a stalwart in the consumer stocks sector, experienced a drop of $3.13, or 6.2%, rounding off at $47.22. Simultaneously, Pet Valu Holdings saw its stocks slide by 81 cents, or 3%, dropping to $25.89. This negative trend didn’t spare Premium Brands and Jamieson Wellness either, who lost $1.09 and 37 cents per share respectively.
The Consumer Price Index (CPI) reported a year-over-year rise of 2.3% in March, displaying a deceleration from February’s 2.6% expansion. On a monthly basis, adjusted for seasonality, March’s CPI remained unchanged.
February’s manufacturing sales reeled in a modest increase of 0.2%. This growth was primarily fuelled by advanced sales in primary metals and chemical goods. In contrast, petroleum and coal product sales experienced the most significant contraction during the same month.
Canada Mortgage and Housing Corporation reported a 3.3% slump in housing starts across Canada in March, amounting to 214,155 units, compared to 221,405 units in February. The number of annual housing starts in populous centers fell by 12.5%. There were 14,924 units documented in March, compared to the previous year’s 17,052 units during the same month.
The Canadian Real Estate Association voiced a decline in national home sales, dropping 4.8% on a monthly basis. Non-seasonally adjusted monthly operations were reported to have fallen by 9.3%, compared to the previous year.
On a positive side, the TSX Venture Exchange slightly advanced by 1.71 points and settled at 630.04. Major subgroups, including healthcare, which hiked 1.9%, information technology, which leaped 1.7%, and gold, which improved by 1.5%, were the day’s winners.
Amidst these leaders, there were some sectors that didn’t fare well. Telecommunication stocks sagged by 0.5%, while consumer discretionary stocks reduced by 0.2% and consumer staples backtracked by 0.1%.
In commodity markets, oil prices exhibited a 62-cent appreciation to $61.55 U.S a barrel. Gold prices too enjoyed a rally, procuring an increase of $19.10 to hit $3,245.40 U.S.