FX.co ★ Canadian Market Holds Early Gains, Looks Headed For Firm Close

The Canadian market is experiencing a resurgence on Wednesday after an initial positive start followed by a brief retreat. Stocks in the utilities, real estate, and technology sectors are benefitting from strong buying interest.

Investors are closely analyzing the latest economic data from both Canada and the U.S., particularly the consumer price inflation figures from the world's largest economy.

Currently, the benchmark S&P/TSX Composite Index has dipped by 71.34 points, or 0.32%, to stand at 22,314.68.

On the economic front, the Canada Mortgage & Housing Corporation reported a slight decline in housing starts, which fell by 0.87% from the previous month to 240,229 units in April.

Statistics Canada revealed that manufacturing sales decreased by 2.1% from the prior month, amounting to CAD 69.9 billion in March. This decline is less severe than the initially projected 2.8% drop. Additionally, sales had decreased by 0.7% in February, and on an annual basis, total sales were down 3.1% in March.

In the U.S., the Labor Department reported that consumer prices increased by 0.3% in April, slightly below the anticipated 0.4% rise, following a 0.4% increase in March. The annual rate of consumer price growth slowed to 3.4% in April from 3.5% in March, meeting expectations. Similarly, the annual rate of core consumer price growth decelerated to 3.6% in April from 3.8% in March, also matching estimates.

Among individual stocks, Boralex Inc. (BLX.TO) surged nearly 10% after reporting first-quarter net earnings of $73 million, an increase of $28 million from the previous year.

Celestica Inc. (CLS.TO) jumped 7.5%, while Bombardier Inc. (BBD.A.TO), Sprott Inc. (SII.TO), West Fraser Timber (WFG.TO), and Colliers International (CIGI.TO) saw gains between 2.3% and 4%. Morguard Corporation (MRC.TO) and goeasy (GSY.TO) also posted significant upticks.

On the downside, SNC-Lavalin Group (ATRL.TO) fell by 3% despite reporting adjusted net income of $73.8 million or $0.42 per diluted share for the first quarter of 2024, up from $55.4 million or $0.32 per diluted share for the same period the previous year.

Boyd Group Services (BYD.TO) declined by 6.25% after reporting a decrease in net earnings to $8.4 million for the first quarter of 2024, compared to $20.8 million for the same period in 2023.

Other notable decliners include CCL Industries (CCL.A.TO), Docebo Inc. (DCBO.TO), Molson Coors Canada Inc. (TPX.B.TO), Methanex Corporation (MX.TO), CCL Industries (CCL.B.TO), and Imperial Oil (IMO.TO), all of which dropped between 1% and 2.3%.