This week in Canadian markets is ending with delays to the inevitable.
On Wednesday, the Bank of Canada (BoC) left its policy rate unchanged at 0.25 per cent, despite consensus that inflation will rise from December’s 4.8 per cent figure. The bank’s quarterly forecasts show that our economy is nearing full capacity.
That said, Governor Tiff Macklem was clear that interest rates are on a rising path and that investors will receive guidance from his organization before a hike actually occurs. The market is pricing in six rate hikes over the next year beginning with the BoC’s meeting in March.
In the meantime, Canadian home prices continue to soar, with buyers looking to finalize sales before mortgage rates eventually rise.
Recent analysis from RBC found that home prices should normalize with higher rates, though supply remains the main factor determining affordability. The country experienced a shortage of up to 250,000 homes in December, with listed homes likely having to triple before the market balances out.
Inflation continues to bolster commodities as well with oil trading near a seven-year high. This has allowed five of our largest oil sands companies to beat the S&P 500 Energy Index over the past three months, including Suncor Energy, Cenovus Energy, Canadian Natural Resources, Imperial Oil and MEG Energy.
Conversely, high-flying growth names like Peloton (-82.77 per cent), Zillow (-67.63 per cent) and Robinhood (-64.55 per cent) have experienced catastrophic losses over the past year as the prospect of higher borrowing costs becomes more of a reality.
In spite of the emergence of new COVID-19 variants, ongoing labor shortages and elevated shipping costs, the outlook for the S&P/TSX Composite Index remains favourable thanks to its heavy weightings in energy, materials and financials. The index is up by 0.72 per cent over the past week as of 12:56 pm EST.
The average yield on short-term government bonds continues to reflect inflation sentiment up over 30 basis points to 1.23 per cent since December.
Over the past five days, our readers identified opportunities to join the rising tide in the commodities space, as well as a technology company hoping to weather economic conditions from the comfort of the metaverse. Let’s take a closer look.
Fokus Mining (TSXV:FKM) reports drill results on its Galloway project
Fokus Mining has announced drill results on its Galloway project in the Abitibi region of Québec.
Mineral grades reached as high as 4.42 g/t AuEq.
The company is progressing towards an NI 43-101 resource estimate.
CEO Jean Rainville sat down with Dave Jackson to discuss the results.
Fokus Mining is down by 5 per cent over the past week trading at $0.095 per share as of 1:05 pm EST.
Newrange Gold (TSXV:NRG) outlines winter drilling program for Red Lake projects
Newrange has provided details on upcoming drill programs on its 100-per-cent owned North Birch and Argosy Gold Mine projects near Red Lake, Ontario.
Argosy contains known gold mineralization while North Birch holds blue sky potential for a significant discovery.
The company is planning five holes along approximately 3 km of strike on the main target horizon.
CEO Robert Archer sat down with Dave Jackson to discuss the programs.
Newrange Gold is down by 6.25 per cent over the past week trading at $0.075 per share as of 1:24 pm EST.
Nextech AR (CSE:NTAR) closes private placement and joins Khronos Group
Nextech AR has closed a C$10M private placement with a single institutional investor.
It has also joined the Khronos Group, a non-profit consortium of over 180 retailers, manufacturers and technology companies advancing standards in 3D, augmented reality, virtual reality and the metaverse.
CEO Evan Gappelberg joined Dave Jackson to discuss the news.
Nextech AR is up by 1.5 per cent over the past week trading at $1.35 per share as of 1:18 pm EST.
Nextech AR (CSE:NTAR) launches Shopify app
Nextech has introduced the company’s ARitize 3D Shopify app.
The app provides Shopify merchants with one-click integration for 3D model making to enhance their e-commerce businesses.
The service’s low monthly hosting fee and zero model creation costs set it apart from the competition.
CEO Evan Gappelberg spoke with Dave Jackson about the launch.
First Tellurium (CSE:FTEL) extends lithium-ion battery life by 400 per cent
First Tellurium has quintupled the life of existing battery technologies with the addition of tellurium.
This is due to tellurium’s superior conductivity and higher energy density compared to sulphur and selenium, which serve as electrode materials in lithium-ion batteries.
The forecasted demand for tellurium already exceeds global supply without accounting for the needs of the battery industry.
CEO Tyrone Docherty spoke with Dave Jackson about the advancements.
First Tellurium is up by 139.29 per cent over the past week trading at $0.67 per share as of 1:26 pm EST.
Join us next Friday afternoon for your survey of the week that was in Canadian markets.