Toronto stocks closed lower on Friday with the S&P/TSX Composite falling 0.79% at the end of the session, as retreating shares in the telecoms, materials and IT sectors outweighed pockets of strength elsewhere.
On the winners' list, Bausch Health Companies Inc (TSX:BHC) topped the session, jumping 14.47% - a rise of 1.22 points to finish at 9.65. Baytex Energy Corp (TSX:BTE) climbed 6.50% or 0.39 points to close at 6.39, and Gildan Activewear Inc. (TSX:GIL) gained 5.77% or 4.23 points to end the day at 77.60.
Conversely, the largest declines were concentrated in individual names. Telus Corp (TSX:T) dropped 11.27% or 1.70 points to finish at 13.38, registering a five-year low. TerraVest Industries Inc (TSX:TVK) fell 7.92% or 9.82 points to close at 114.23, and Eldorado Gold Corp (TSX:ELD) declined 7.80% or 3.58 points to end at 42.31.
Market breadth on the Toronto Stock Exchange showed more stocks falling than rising, with 516 issues down versus 442 that advanced, and 71 unchanged.
Volatility and breadth
The S&P/TSX 60 VIX, which tracks the implied volatility of options on the S&P/TSX Composite, moved up 0.54% to 14.97, reflecting a modest increase in option-implied market uncertainty.
Commodities and currencies
Precious metals and energy markets diverged during the session. Gold Futures for August delivery declined 1.22% or 49.90 to settle at $4,050.20 a troy ounce. In energy, Crude oil for September delivery rose 1.29% or 1.08 to $84.67 a barrel, while the October Brent oil contract increased 1.37% or 1.19 to trade at $88.07 a barrel.
On the currency front, CAD/USD was effectively flat, unchanged by 0.06% at 0.71, and CAD/EUR was also reported unchanged at 0.62, a 0.13% move. The US Dollar Index Futures was down 0.02% at 99.70.
Implications and context
The session produced a mix of outsized individual stock moves amid generally negative returns for the broader Canadian market. While a small number of names posted double-digit percentage moves to the upside, several notable declines, including a pronounced drop in a major telecom, contributed to the negative headline for the S&P/TSX Composite. Volatility edged higher, and commodity prices displayed divergence with gold down and oil up.
Investors and analysts will likely monitor whether the weakness in telecoms, materials and IT continues to pressure the index in coming sessions and how commodity price moves feed into sector performance.