The S&P/TSX Composite Index inched higher by 0.15% on Friday, adding 28.04 points. The day’s movement underscored what has been a recurring theme for Canadian equities in recent weeks: a market caught between strong fundamentals in traditional sectors and turbulence among growth-oriented technology stocks.
One of the day’s most notable movers was Shopify (TSX:SHOP)(NYSE:SHOP), which dropped more than 3%. The e-commerce giant has been under consistent selling pressure since peaking earlier this year, and its shares now sit about 31% below their all-time highs. Investors appear to be reassessing high-growth valuations amid concerns about inflation, interest rates, and stretched multiples across the tech sector.
Other Canadian technology names followed the same path. Lightspeed Commerce fell 3.48%, while learning platform Docebo tumbled 5.68%, adding to broader weakness in the sector.
Blue-Chip Stocks Provide Stability
While technology names lagged, some of Canada’s largest and most established companies delivered modest gains, helping to steady the index. Financials, in particular, extended their rally, supported by an improving domestic economy and rising bond yields.
- Royal Bank of Canada (TSX:RY) climbed 1%
- Toronto-Dominion Bank (TSX:TD) advanced 1.45%
- Bank of Nova Scotia (TSX:BNS) rose 1.38%
- Bank of Montreal (TSX:BMO) jumped 2.52%
- Canadian Imperial Bank of Commerce (TSX:CM) increased 1.45%
The strength in bank stocks reflected investor optimism that credit conditions are stabilizing and loan growth will pick up as the economy reopens.
Outside financials, industrials showed resilience as well. Canadian National Railway (TSX:CNR) gained 0.45%, while Canadian Pacific Railway (TSX:CP) surged 2.8%, highlighting the sector’s role as a barometer for trade and goods movement across North America.
In contrast, energy names struggled. Enbridge (TSX:ENB) slipped 1.6% and TC Energy (TSX:TRP) edged down 0.54%, reflecting volatility in crude prices and questions about pipeline capacity. Brookfield Asset Management (TSX:BAM) stood out among non-bank blue chips, rising 1.8% as investors continued to favor its global alternative asset portfolio.
Cannabis Stocks Slide as Aurora Results Disappoint
The cannabis sector remained under pressure. The Horizons Marijuana Life Sciences Index ETF (HMMJ) fell 2.36%, reflecting broad weakness among major producers.
- Canopy Growth (TSX:WEED) declined 3.17%
- Aurora Cannabis (TSX:ACB) tumbled 4.18%
- Hexo (TSX:HEXO) fell 3.66%
- OrganiGram (TSX:OGI) lost 3.27%
- Cronos Group (TSX:CRON) bucked the trend with a modest 0.8% gain
Aurora’s quarterly results, released after market close, set the tone for the sector. The company reported revenue of $55.1 million for its fiscal third quarter, a 25% decline from the prior year and well below analyst expectations of $68.8 million. The company also posted an adjusted EBITDA loss of $24 million, far steeper than the $10 million loss analysts had forecast.
The details painted a stark picture. Aurora’s recreational marijuana revenue plunged 53% year over year to $18 million, reflecting pandemic-related disruptions and intensifying competition. While medical cannabis sales improved 17% to $36.4 million, the segment was not enough to offset steep losses elsewhere. Aurora’s stock slid more than 10% in post-market U.S. trading as investors questioned the company’s path to profitability and market share recovery.
Cryptocurrencies Face Fresh Selling Pressure
The cryptocurrency market, which has been closely watched by investors across asset classes, endured another volatile session. Bitcoin traded at US$50,116, down roughly 20% from its record high. The decline followed a tweet from Tesla CEO Elon Musk highlighting the environmental costs of Bitcoin mining, sparking a wave of selling across digital assets.
Ethereum, the second-largest cryptocurrency, fell to US$3,800 after losing more than 10% in recent days. Dogecoin, the once lighthearted meme coin that surged into mainstream attention this spring, dropped to US$0.49, down nearly 40% in just a few sessions.
“If it moves a lot further, that could have a material impact on our outlook and it’s something we’d have to take into account in our setting of monetary policy,” Macklem said. “If the dollar were to continue to move, particularly if it’s not reflecting good developments for Canada, that could become more of a headwind on our export projection.”
For now, the TSX continues to balance optimism around Canada’s reopening with caution over stretched valuations in high-growth sectors. Until a clearer catalyst emerges, the market appears set to remain in its tight trading range.
