© Reuters. The historic Art Deco frontage of the original Toronto Stock Exchange building on Bay Street in Toronto, Ontario, Canada. REUTERS/Chris Helgren/FILE PHOTO
Written by Fergal Smith
(Reuters) – The main stock index in Canada saw a slight dip on Friday, but still reached its fourth consecutive weekly gain, fueled by stronger-than-expected job figures from the U.S. and Canada, which have raised hopes for a gentle economic slowdown.
Ending the day at 21,737.53, the Toronto Stock Exchange’s S&P/TSX composite index fell by 57.03 points or 0.3%, after previously achieving its highest closing levels in almost two years on Thursday.
Over the week, the index managed a 0.9% increase, marking its longest winning streak since April 2023.
“The U.S. appears to be heading towards a smooth landing, while the situation in Canada is a bit more complex. Nevertheless, the market seems to be holding up relatively well,” commented Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth.
In February, U.S. job growth showed an upward trend, although this may mask a gradual weakening in the labor market as the unemployment rate reached a two-year high of 3.9%.
Meanwhile, Canada saw a notable addition of 40,700 jobs in February, double the expected amount, although wage growth decreased for the second consecutive month as the central bank maintains interest rates at a 22-year peak.
The energy sector faced a 0.7% decline as oil prices closed 1.2% lower at $78.01 per barrel, leading to decreases in shares of uranium mining companies. Nexgen Energy Ltd saw an 8.7% drop, while Cameco Corp (TSX:) fell by 6.2%.
Consumer-related stocks also experienced losses, with the consumer staples sector dropping by 1% and the consumer discretionary sector ending 0.4% lower.
The materials index, which encompasses precious and base metal miners as well as fertilizer firms, saw a slight increase of 0.2% as gold continued its record-breaking rally.
“Despite gold reaching all-time highs and ongoing geopolitical uncertainties, the resource sector, which serves as a significant driver, has not seen a substantial increase. This is hindering the TSX’s progress to some extent,” noted Picardo.