The Canadian equities market extended its upward trend on Monday, supported by positive investor sentiment after the Federal Reserve’s significant interest rate cut. This marked the third consecutive session of gains, pushing the S&P/TSX Composite Index up by 27 points to close at 23,895, achieving a new all-time high.
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Sectors Lifting the TSX Index
Despite the downward pressure from weaker silver and copper prices that hurt metal mining stocks, gains in the energy, consumer, and utility sectors provided solid support to the TSX benchmark. These sectors played a key role in maintaining the overall market momentum as global factors fueled confidence.
Top TSX Composite Movers
Several top-performing stocks contributed to the positive performance of the TSX index. Secure Energy Services, Denison Mines, NexGen Energy, and Enghouse Systems all recorded gains of at least 3.3% for the day, highlighting their strong trading activity.
In contrast, SSR Mining (TSX: SSRM) experienced the steepest decline, dropping by over 6% to $7.68 per share. This sharp fall occurred after the company announced plans to restart its Seabee operations in October following reduced fire activity. While the fire incident caused some damage to remote equipment, SSR Mining expects to update its cost guidance in its Q3 financial report. As a result of these challenges, SSRM stock has fallen 46% year to date.
Bottom Performers on the TSX
Apart from SSR Mining, other mining companies such as Fortuna Mining, Calibre Mining, and SilverCrest Metals also faced losses, with their shares dropping by at least 3.4%. These declines were largely influenced by the ongoing weakness in precious metal prices, impacting investor sentiment in the sector.
Active TSX Stocks and Daily Volume
High trade volumes were noted in major TSX stocks, including Canadian Natural Resources, TC Energy, B2Gold, Suncor Energy, and Toronto-Dominion Bank, which were the most actively traded stocks of the day.
Market Outlook for Today
The rise in oil and gold prices on Tuesday, fueled by escalating tensions in the Middle East, could further boost mining and energy stocks. As a result, the TSX is likely to maintain its upward trajectory. Additionally, investors will be closely monitoring U.S. consumer confidence data, as well as a speech by Bank of Canada Governor Tiff Macklem on the economy and monetary policy, for further market direction.
Key market movers to watch include TC Energy Corporation (TSX: TRP), Capstone Copper Corp. (TSX: CS), and Cenovus Energy Inc. (TSX: CVE), among others.
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The Canadian equities market continues to benefit from a favorable macroeconomic environment, with strong performances in energy and utility stocks driving the S&P/TSX Composite Index higher. However, weakness in the mining sector persists, mainly due to fluctuations in commodity prices. Investors remain optimistic, but external factors such as geopolitical tensions and economic data could sway market direction in the coming days.