Canadian Stocks Pull Back Modestly Amid Profit Taking

(RTTNews) - Canadian stocks saw a modest dip on Friday as investors opted for profit taking to realize the gains made over this week when the market reached record-high levels.

After opening above yesterday's close, the benchmark S&P/TSX Composite Index, reached an intraday high of 27,422.06 in less than an hour. After falling into negative territory, the index hovered around before finally settling at 27,314.01, down by 72.92 (or 0.27%).

Statistics Canada reported on Wednesday that the gap between the nation's highest and lowest household income reached a record high in the first quarter of 2025.

Around 75% of the nation's exports are going to the US, and the effects of over-reliance on the US are slowly starting to show up after Trump's aggressive tariff imposition on Canada.

As the Canadian economy is slowly absorbing the heat of tariffs, PM Mark Carney has assured his countrymen on building a strong economy.

Even as high-level official talks between US and Canada continue as the deadline for the "reciprocal tariffs" suspension period expires by August 1, Carney has already stated that some of Trump's tariffs would remain even if a bilateral trade agreement is signed between both nations.

Days before, to support the domestic steel and aluminum industry struggling to compete with foreign players who are dumping metals into Canada for cheap rates, Carney announced tariffs against countries in Free Trade Agreement with Canada.

In finding a consensus with First Nations leaders on the Building Canada Act (Bill C-5) which allows the cabinet to speed up approvals for big energy, infrastructure, and industrial projects deemed to be of national interest, Carney is planning to launch a region-wise dialogue and consultation process for input and feedback.

Notably, there are 634 recognized First Nation governments across Canada.

Recently, Carney has fueled measures to explore marketplaces for their exports other than the US.

Weeks before, Canada began its LNG export to Asia. The Canadian foreign minister is set to tour Asian countries to sign bilateral trade agreements.

Later this year, leading CEOs of Canada are embarking on a trip to India to strike favorable long-term business deals.

Trade talks between Canada and South American countries are also reportedly in advanced stages.

Yesterday's data from the US revealing a resilient job market and decent retail sales growth, has drowned the hopes for any immediate interest rate cuts by the Federal Reserve. Trump has expressed his displeasure over high interest rates and strongly criticized Fed Chair Jerome Powell.

Major sectors that lost in today's trading were Communication Services (0.90%), Industrials (1.04%), Consumer Discretionary (1.05%), and Healthcare (1.50%).

Among the individual stocks, Canadian Pacific Kansas (3.57%), Canadian National Railway (2.42%), Magna International (2.92%), and Bausch Health Companies (2.58%) were the notable losers.

Major sectors that gained in today's trading were Consumer Staples (1.19%), Utilities (0.47%), Energy (0.09%), and Real Estate (0.04%).

Among the individual stocks, Premium Brands Holdings (2.57%), Alimentation Couche-Tard Inc (1.93%), Capital Power Corp (2.32%), and Headwater Exploration Inc (3.77%) were the prominent gainers.

G Mining Ventures Corp (3.97%) and Mda Ltd (3.85%) were among the prominent market-moving stocks today.