The S&P/TSX Composite Index ended Friday nearly unchanged, holding close to its recent record high. Investors weighed developments in the Middle East conflict and Canadian economic data showing signs of a slowdown. The index closed down 8.43 points, or 0.03%, at 26,497.57.
This extended its sideways trend since hitting a record closing high on June 12. For the week, the index also dipped 0.03%. Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth, said, “The fundamental theme is one of market resilience.
We have a lot of moving parts. You’ve got geopolitical risk, you’ve got trade talks, you’ve got central bank action – a host of elements which make it difficult to predict where we’ll be in the second half of the year and yet investor sentiment is still leaning towards risk-on, still concerned about the fear of missing out rather than encountering a sudden downside.”
Canada’s retail sales rose in April month-over-month but missed estimates.
Market resilience amid mixed signals
Advanced data indicated a 1.1% decline in May. Maria Solovieva, an economist at TD Economics, noted in a report, “The advance estimate sets a somber tone for the second quarter. In addition, our internal credit and debit card spending data shows a meaningful softening in spending through May, suggesting that consumers tightened their purse strings.”
The technology sector dropped 0.5%, with CGI Inc falling 2.1%.
Consumer staples also lost 0.5%. Teck Resources Ltd is exploring options to increase germanium production, a strategic metal crucial to chipmaking. The company is in discussions with governments, including Canada and the U.S., about available funding, Teck told Reuters.
Teck shares slid 1.2%. Only two of the 10 major sectors finished higher, but they included the heavily weighted financials, which added 0.1%.