The Canadian market remained choppy on Thursday after posting a 0.7% rise in the previous session. The TSX Composite Index slid by 0.4%, or about 92 points, yesterday to settle at 20,602.
A sharp selloff in metals and mining stocks took a toll on the key Canadian benchmark, as nearly 10 mining companies’ shares tanked by at least 5% each. The mining sector selloff was mainly driven by a sharp decline in gold and copper prices on September 16. While gold prices dived about 2.2% in the last session, copper futures tanked more than 2.8%.
Meanwhile, oil prices also closed the session a tad lower. This weakness in the commodities made investors anxious, despite a surprise rise in the August U.S. retail sales numbers.
Top TSX movers and active stocks
- Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ), Suncor Energy, Crescent Point Energy, Kinross Gold, and Barrick Gold were the top five most-active stocks by their trade volume on the TSX.
- Nuvei (TSX:NVEI) was the top-gainer stock on the TSX Composite with its 6.6% gains for the day. Air Canada (TSX:AC), Trisura Group, ATS Automation Tooling, and Aritzia were among other top gainers, as their shares settled with at least 2% gains each.
- Mining companies Endeavour Silver, OceanaGold, Fortuna Silver, and Lundin Mining were the top four losers on the key Canadian market index yesterday. All these TSX stocks shed at least 6% each in the last session.
Top TSX stocks to watch today
TSX stocks may drift sideways on Friday, September 17 due to the lack of any important Canadian economic releases or corporate events. Some major economic events due for next week — including the U.S. Fed interest rate decision and Canada’s core retail sales release — could keep investors nervous. Nonetheless, any sharp recovery in commodity prices today could drive a recovery in Canadian metals and mining stocks after Thursday’s selloff.
Here are some of the TSX stocks investors could keep on their watchlist today:
- Nuvei stock: This TSX tech stock continues to be in focus in September. The stock has surged 73% in the third quarter so far. Recently, the company made two key acquisitions — SimplexCC Ltd. and Paymentez LLC. I expect these acquisitions to accelerate Nuvei’s long-term financial growth outlook and keep its stock soaring.
- Canadian Natural Resources stock: Canadian Natural’s stock has risen by about 5% this month, taking its year-to-date gains to more than 43%. It has been one of the most active stock by trade volume on the TSX lately. On Thursday, more than 15 million shares of CNQ were traded on the TSX — significantly higher than its three-month volume average of six million shares. Despite its improving fundamentals, its stock price slid yesterday due to a drop in metals prices, which I consider to be temporary.
- Air Canada stock: The shares of the largest Canadian airline rose by 2.8% Thursday after declining in the previous four consecutive sessions. Yesterday’s gains in Air Canada stock came after some media reports pointed towards a surge in summer travel demand. Its shares are currently trading with only 1.4% year-to-date gains. It could be a wonderful opportunity for long-term investors to buy AC stock today before its sharp recovery starts.
Canadian investors can also keep a close eye on BlackBerry and Aurora Cannabis stock today. Their share prices might remain volatile in the next few sessions, as these companies are set to announce their latest quarterly results next week. While Aurora will release their quarterly earnings report on Tuesday, September 21, BlackBerry will announce quarterly results on Wednesday, September 22.
BlackBerry has remained in focus this year so far due to its rising popularity among Reddit traders. While BB stock has risen by 52% in 2021, ACB stock has seen 21% value erosion.