TSX declines on gold and Telus losses but posts fourth straight monthly gain
Canada’s main stock index fell on Friday due to sliding gold prices and a sharp drop in Telus shares, though strong energy performance and robust economic growth data secured a fourth consecutive monthly gain for the market.
The S&P/TSX Composite index closed down 0.8 percent at 35,226.14 on Friday, dragged lower by weakness in materials and technology stocks. Despite the daily decline, the benchmark secured a 1.1 percent gain for July, marking its fourth consecutive monthly advance.
The materials sector led the daily downturn, falling 3 percent as gold prices retreated 1.3 percent. The precious metal weakened after the U.S. dollar rebounded from a more than one-month low reached in the previous session.
Technology shares also proved to be a significant drag on the index, declining 2.6 percent overall. Telus shares plummeted 11.3 percent after the telecommunications company reported a second-quarter loss. The company also reset its quarterly dividend, cutting the annualized payout by 55 percent to prioritize debt reduction.
Energy Strength and Corporate Activity
Conversely, the energy sector provided crucial support, rising 0.6 percent on the day to extend its monthly surge to more than 16 percent. U.S. crude oil futures settled 1.3 percent higher at $84.67 a barrel. This followed reports of tankers turning around in the Strait of Hormuz, prompting traders to reassess shipping flows.
Major Canadian energy players capitalized on this favorable environment, with Imperial Oil, Enbridge and TC Energy all exceeding second-quarter profit estimates. Michael Constantino, CEO of Webull Canada, observed that the energy sector has had a strong run. He added that it presents an opportunity for clients to take some money off the table and shift their allocations.
In corporate developments, retailer Alimentation Couche-Tard saw its shares rise 1.4 percent after announcing plans to acquire Poland’s Zabka for about $8.7 billion. Broader market resilience was further supported by industrials, which gained 0.5 percent, and heavily weighted financials, which edged up 0.2 percent.
Underpinning the market’s monthly strength was preliminary data showing Canada’s economy expanded at an annualized rate of 3.4 percent in the second quarter. This growth trajectory notably exceeds the Bank of Canada’s recent forecasts, signaling underlying economic resilience for investors despite sector-specific headwinds.
