The S&P/TSX Composite Index edged lower on Friday as a sharp decline in Telus weighed on telecom stocks, offsetting gains in battery metals and energy shares, while investors digested stronger-than-expected Canadian GDP data and corporate earnings.
The index closed down 279.70 points, or 0.8%, at 35,226.14, with mixed sectors. The Battery Metals Index led gainers, up 4%, while energy was up 0.6%. Telecom led decliners, down 3.5%.
In commodities, West Texas Intermediate (WTI) crude oil rose on Friday as ongoing tensions in the Middle East and concerns over potential supply disruptions through the Strait of Hormuz supported prices.
WTI crude oil contract closed up $1.08, or 1.3%, and settled at $84.67 per barrel, while September Brent oil was last seen up $1.07, or 1.2%, at $90.20 per barrel.
Meanwhile, spot gold was last seen down $56.01, or 1.4%, at $4,047.40 per ounce. Comex gold futures for December declined 1.23%, or $51.00, to $4,109.60 per ounce.
Canada's real gross domestic product rose 0.3% in May for a second straight month, with preliminary data pointing to a further 0.2% monthly increase in June, Statistics Canada said Friday.
May's GDP expansion was higher than a 0.2% monthly advance in a survey compiled by Bloomberg.
Goods-producing industries led the growth, expanding 0.6% monthly as most sectors within the category improved. Service industries increased 0.2%, driven mainly by gains in real estate and rental and leasing, along with public administration.
Overall, 13 of 20 industries posted increases in May, pointing to a broad-based economic expansion, added StatsCan. With the advance estimate for June, GDP points to a growth of 0.8% in the second quarter of 2026, according to the agency. The gains came after two successive quarters of negative growth for Canada's economy that had been deemed in a technical recession.
In stocks, Telus (T.TO) closed down 11.3% at C$13.38 on Friday after reporting its second-quarter adjusted earnings fell 27% to C$0.16 per share.
Telus also declared a quarterly dividend of C$0.1875 per share, which it described as a "reset" of 55% to an annualized C$0.75 per share, from the previous C$1.6736 per share. The cut is expected to generate C$2.7 billion in cumulative cash savings through 2028, which will be used to pay down debt.
Meanwhile Enbridge (ENB.TO, ENB) closed down C$1.40 at C$76.28 after reporting second-quarter adjusted earnings per share at C$0.63 compared with C$0.65 a year earlier.