Canada’s main stock index edged higher on Friday amid choppy trading as rate-sensitive technology stocks gained, and as investors were relieved that the domestic retail sales data declined less than expected.
At 10:07 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 58.46 points, or 0.29%, at 20,399.9.
Canada’s retail sales edged down by 0.1% in November from October on lower sales at food and beverage stores, as well as building material, garden equipment and supply dealers. Analysts had expected the sales to fall by 0.5%.
“It does show that the Canadian economy is still holding up reasonably well, as did things like the employment numbers earlier this month,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
“And, inflation is coming down, so that’s all encouraging,” Technology stocks were up 1.1%, with Shopify Inc and Hut 8 Mining pulling the sector up.
Gold miners, however, dipped 0.6% as spot gold prices fell.
The TSX is set for a third straight week of gains even as concerns about recessions were reignited this week, amid a mixed bag of economic data out of Canada as well as the United States.
While commodity-linked stocks had buoyed the index so far this year, recessionary concerns have now taken hold over markets.
All eyes are now on the interest rate decision next week by Bank of Canada, with money markets seeing a near 70% likelihood of a 25-basis-point hike.
Among single stocks, Hudbay Minerals’s shares fell 3.2% after protesters in Peru entered the Canada-based miner’s copper unit in the southern region of Cusco and damaged key machinery and vehicles.
Tim Horton’s owner Restaurant Brands International gained 1.4% after BMO Capital Markets upgraded the stock to “outperform”.
First Majestic Silver Corp fell 2.3% after Cormark Securities and BMO Capital Markets trimmed their PT on the miners after it reported a 14% fall in fourth-quarter production.
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