Canada Market Update – May 2025

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Assalamu Alaykum,

Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in Canada for May. Let’s get started.

Stock market updates

May continued the recovery trend for Canadian markets, delivering another month of solid gains. The S&P/TSX Composite Index climbed 5.56%, closing at CAD26,175, building on April’s momentum. The S&P/TSX Venture Composite Index outperformed with a 7.49% surge, ending the month at CAD694. Strong performance across both indices reflects growing investor confidence and market resilience.

  • 55 North Mining Inc. has signed an updated exploration agreement with the Marcel Colomb First Nation (MCFN) to advance exploration activities within MCFN Traditional Territory in Manitoba. As part of the agreement, 55 North will issue 2 million common shares and grant 2 million stock options to MCFN, exercisable at $0.15 per share over five years. The agreement aims to foster a collaborative and mutually beneficial relationship between the company and MCFN.
  • Cybeats Technologies Corp. has expanded its contract by 34% with a Fortune 500 water technology company, extending SBOM Studio coverage to additional treatment-plant controllers, pumping-station firmware, and cloud analytics platforms across four continents. The renewal, effective May 1, 2025, follows a year of strong performance and growing regulatory pressure, including the EPA’s 2024 advisory and the EU Cyber-Resilience Act. This expansion supports Cybeats’ strategy of building recurring revenue through long-term renewals and reflects its 148% net revenue retention.
  • Beyond Lithium Inc. has acquired a 100% interest in the Rare One Project, encompassing six mineral claims over 4,688 hectares in British Columbia’s Rocky Mountain Rare Earth Belt. The acquisition, finalized on May 27, 2025, aims to enhance Beyond Lithium’s portfolio in critical minerals, including lithium and rare earth elements. The company plans to advance exploration activities and seek joint venture partnerships to support development and generate non-dilutive capital.
  • Oberon Uranium Corp. has agreed to sell 22 mineral claims totaling 18,924 hectares of the Fusion Uranium Zone Project in Saskatchewan to Little Fish Uranium Corp. for $700,000 in cash. The transaction, set to close on May 22, 2025, is an arms-length deal and will not result in a change of control for Oberon. Proceeds will support the company’s ongoing uranium exploration initiatives.

Top gainer and top loser Halal stocks in the USA

Economic updates

  • Canada’s annual inflation rate dropped to 1.7% in April, down from 2.3% in March, largely due to falling energy prices and the federal government’s removal of the consumer carbon tax. However, the Bank of Canada faces a dilemma as core inflation measures, which exclude volatile items and the carbon tax, rose sharply. The CPI median increased to 3.2% from 2.8%, reaching its highest level since March 2024.
  • Canada’s unemployment rate rose to 6.9% in April, up from 6.7% in March, while employment remained mostly flat with a modest gain of just 7,400 jobs, according to Statistics Canada. Analysts noted that without temporary hiring related to the federal election, job numbers would have likely declined.
  • Canadian home sales dipped 0.1% in April compared to March and were down 9.8% year-over-year, according to the Canadian Real Estate Association. The Home Price Index fell 1.2% month-over-month and 3.6% annually, while the national average selling price dropped 3.9% from a year earlier. The data reflects ongoing weakness in the housing market amid higher interest rates and economic uncertainty.
  • Canada’s retail sales rose 0.8% in March, exceeding expectations of a 0.7% gain, with preliminary data suggesting a further 0.5% increase in April. The standout sector was motor vehicles and parts, which jumped 4.8% – its first rise in three months likely driven by pre-tariff purchases. Sales climbed in six of nine subsectors, accounting for nearly 59% of total retail trade, and volumes rose 0.9%.

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