Canada’s main stock index climbed to another record high on Friday, driven by strong gains in gold mining stocks and investor optimism following the Bank of Canada’s recent rate cut aimed at stimulating the domestic economy.
The S&P/TSX Composite Index closed up 314.83 points, or 1.1%, at 29,768.36, surpassing the previous record set just a day earlier. The index posted a 1.7% gain for the week, marking its seventh consecutive weekly increase—the longest winning streak since February 2024.
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“The Bank of Canada’s recent rate cut was exactly the boost markets were looking for,” said Victor Kuntzevitsky, portfolio manager at Stonehaven, Wellington-Altus Private Counsel. “It signals confidence in inflation trends and a shift toward supporting growth. This has fundamentally changed how investors are pricing risk and has provided a solid tailwind for Canadian equities.”
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While Canadian retail sales dipped 0.8% in July, early indicators suggest a rebound of 1% in August. On Wednesday, the central bank lowered its key policy interest rate to 2.5%—a three-year low—and signaled its readiness to cut further if economic risks increase.
The materials sector led the rally, jumping 3.9%, fueled by rising gold prices nearing all-time highs. Shares of Barrick Mining Corporation surged 9.7%, making it the day’s top performer.
“The rally in gold stocks is a reflection of Canadian miners’ strong cost discipline,” Kuntzevitsky added. “Investors are clearly rewarding companies that can efficiently convert higher gold prices into increased shareholder value.”
Other sectors also saw gains, with consumer staples up 1.3% and financials climbing 0.9%. However, two of the 10 major sectors ended the day in the red. Energy was the weakest, falling 2.2% as oil prices declined 1.4% to $62.68 a barrel amid concerns over oversupply and weakening demand.
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