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(Reuters) – The primary commodity-linked index in Canada, the S&P/TSX composite index of the Toronto Stock Exchange, concluded the trading week with a decline, although it still marked its sixth consecutive weekly increase. Closing down by 103.18 points, or 0.5%, the index stood at 21,984.08. This decline comes despite reaching a record high close for the first time in two years earlier on Tuesday.
Over the course of the week, the index advanced by 0.6%, continuing its longest winning streak since December 2020. “Today’s market pullback is largely influenced by the strengthening U.S. dollar. Many investors are seizing the opportunity to secure profits across various sectors,” noted Allan Small, a senior investment advisor at the Allan Small Financial Group with iA Private Wealth.
A strong U.S. dollar generally spells trouble for commodities, as it increases their cost in other currencies. This impact was evident in Canada’s market, where resource stocks—making up about 30% of the market—saw declines. The materials sector, encompassing miners and fertilizer producers, dropped by 1% amid falling gold and copper prices.
The U.S. dollar extended its upward trajectory, recording gains for the second consecutive week against a group of major currencies. This trend made U.S.-priced commodities less affordable for international buyers.
In other sectors, financials also witnessed a decrease, dropping by 0.6%, while technology sectors saw a 1.1% fall. Meanwhile, shares of Tilray (NASDAQ:TLRY) Brands Inc experienced a significant surge, climbing 19.8% as cannabis companies gained momentum following Germany’s decision to legalize cannabis possession.
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