In November, the Canadian economy saw relief in the housing market as rent prices fell for the first time in three years, largely due to increased housing supply and softened demand. The Bank of Canada maintained a cautious stance with the prospect of rate cuts influenced by overall economic resilience and stable inflation, despite a slight uptick in headline inflation driven by energy prices. Meanwhile, property tax growth accelerated, reflecting municipal fiscal adjustments in major cities.
Canada economy update
- For the first time in three years, rent prices across Canada have declined, with the largest decreases in cities like Toronto and Vancouver. This is attributed to increased housing supply and slowing demand, providing temporary relief for renters.
- The Bank of Canada has maintained a cautious approach, with potential rate cuts influenced by economic resilience and inflation trends. Recent housing market activity has seen a boost from earlier rate cuts, as buyers respond to improved affordability.
- Headline inflation edged higher in October, driven by a smaller decline in energy price growth. With October’s reading at 2% (year-over-year), headline CPI has remained remarkably stable around the 2% target for three consecutive months.
- Property tax price growth, reported annually in October, accelerated this year to 6%, up from 5% in October last year, driven by tax increases implemented in major Canadian cities in 2024.
Canada stock market update
November was a strong month for Canadian markets! The S&P/TSX Composite Index saw a notable increase of 6.17%, reaching CAD$ 25,648. The S&P/TSX Venture Composite Index also experienced growth, rising 2.13% to CAD$ 614.26. A month of solid performance and continued optimism in Canada!
- TFI International launched a renewed share buyback program, allowing the company to repurchase up to 7.9 million shares. This reflects confidence in its financial health and growth potential, aimed at providing value to its shareholders.
- The Canadian Securities Exchange (CSE) highlighted its active month in November 2024 by welcoming three new mining companies—Canary Gold Corp., Adelphi Metals Inc., and Dunbar Metals Corp.—further solidifying its role as a hub for resource-focused businesses.
- Wedgemount Resources Corp. announced significant progress on its remediation program for recently acquired oil and gas assets in Texas, focusing on optimizing well production through chemical treatments and infrastructure upgrades. The company plans to apply advanced well-stimulation techniques to approximately half of its 119 wells in the Huggy Asset over the next year.
- Syntheia Corp., a Canadian leader in conversational AI, celebrated its listing on the CSE under the ticker symbol “SYAI” on November 20, 2024.
- Canadian Natural Resources, a Canadian energy giant drew attention for its strong dividend performance and growth prospects. Analysts highlighted its potential to continue delivering solid returns amidst an uncertain market environment, especially with crude oil prices stabilizing.
Canadian top gainer and top loser stocks for November
Summary
November was marked by robust performance in Canadian markets, highlighted by a significant rise in the S&P/TSX Composite Index. Investor confidence was buoyed by strategic corporate moves, including renewed share buyback programs and new listings on the Canadian Securities Exchange. The broader economic landscape combined housing market adjustments and stable inflation trends with strategic fiscal policies, underpinning an overall optimistic market sentiment.
Disclaimer: The content is for informational purposes only and does not constitute legal, investment or financial advice.
It is important to conduct your own research or consult with a financial or investment advisor. Past performance is not indicative of future results. All logos or brands are referenced for identification purposes only and do not constitute an endorsement of any kind. This information is accurate as of the date of publication and may not reflect recent changes. Access our comprehensive legal disclaimers at https://musaffa.com/disclaimer.