TSX Recap: What Happened in the Market on Tuesday?

Here’s what moved the TSX stock market on Tuesday.

| More on:
Person Hands Opening Mailbox To Remove Newspaper

Image source: Getty Images

Canada’s main stock market index, the S&P/TSX Composite, lost 289.28 points to close at the 20,174.14 level on Tuesday — down more than 1.4% for the day.

Just 389 stocks advanced on the TSX stock market, 244 were unchanged, while 1,444 stocks declined during Tuesday’s trading session.

The picture was the same on the junior S&P/TSX Venture Composite Index, which lost 12.82 points, or 1.46%, to close at the 867.59 level, as 653 tickers were in the red, 351 stocks remained unchanged, while only 248 TSXV listed shares rose on Tuesday.

Major TSX market trading themes on Tuesday

A significant 1% drop in gold prices to US$1,733.49 per ounce can be blamed on a rising United States dollar.

Energy stocks tried to remain the star of the TSX after retaining early gains through mid-day. However, they eventually yielded to selling pressure when oil prices reversed course towards the end of Tuesday trading session. Energy stocks lost just 0.035% for the day. The sector had a strong show on Monday. Its 3.1% gain helped push the TSX higher, with support from healthcare, which gained 2.4% yesterday. Healthcare stocks lost 2% on Tuesday, and technology names were down 3.8%.

That said, oil prices remain firm enough to make energy investors smile. The Western Texas Intermediate (WTI) crude oil benchmark is up over 54% so far this year at US$74.77 per barrel. Natural gas prices continued to soar to new records as a crisis looms in Europe. The crisis may spread to more economies. Natural gas futures advanced 3% to US$5.88 on Tuesday. Baytex Energy (TSX:BTE)(NYSE:BTE) stock is hitting record highs this year, finally.

Oil and Natural Gas Prices year-to-date performance
Oil and natural gas prices are on a tear so far in 2021, pulling an energy heavy TSX market generally higher. Source: Koyfin.

Technology stocks continue to bulk under the pressure of rising bond yields. The Canadian 10-year treasury bond yield increased by 9.6 basis points, or 6.8%, to 1.507%.

Inflation realities are hitting central bankers’ minds, and high inflation rates could linger for longer, prompting a revision to earlier expansionary policies. Interest rates could rise sooner rather than later, and investors are pricing all this information into market valuations. High-growth tech names and highly leveraged utilities take natural hits when these things happen.

Aurora Cannabis stock rises

On the brighter side for TSX cannabis stock investors, Aurora Cannabis (TSX:ACB)(NYSE:ACB) stock rebounded from an early 4% loss at market open to close nearly 6.9% higher at $8.64 per share. Pot investors’ early disappointment about the company’s revenue and earnings miss in Monday’s financial results could have weighed on ACB stock at market open, but an analyst upgrade from MKM Partners and positive and believable comments from ACB’s CEO about the outlook for a positive EBITDA by the first half of the fiscal year 2022 is music to bullish investors’ ears.

Agnico Eagle Mines to acquire Kirkland Lake Gold

Canadian gold miners Kirkland Lake Gold (TSX:KL)(NYSE:KL) and Agnico Eagle Mines (TSX: AEM)(NYSE: AEM) announced early on Tuesday a merger of equals. The combined company shall retain the “Agnico Eagle Mines Limited” name. Kirkland shareholders will receive 0.7935 of an Agnico Eagle common share in a deal that may close in December.

Executives at the two firms expect the merger to create “the gold industry’s highest-quality senior producer, with the lowest unit costs, highest margins, most favourable risk profile and industry-leading best practices in key areas of environmental, social and governance (ESG).” However, investors showed their disapproval, as Kirkland stock closed 7.8% lower, while Agnico Eagle stock lost 1.2% for the day. Fellow Fool contributor Jitendra Parashar believes the deal undervalues KL stock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

Women's fashion boutique Aritzia is a top stock to buy in September 2022.
Stocks for Beginners

Better Stock to Buy Now: Canada Goose or Aritzia Stock?

In the battle for Canada's top retailer, it looks like these companies are looking beyond our borders for even more…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Set and Forget: 1 Dividend Stock That Could Create $1,000 in Tax-Free Passive Income in 10 Years

Enbridge operates a low-risk business that has allowed the TSX dividend giant to raise its payout by 10% annually since…

Read more »

financial freedom sign

Want $1 Million in Retirement? Invest $10,000 in These 3 Stocks and Wait a Decade

What would it take to convert $10,000 into $1 million? Let’s do the math and see stocks that have the…

Read more »

edit Balloon shaped as a heart

3 Stocks Retirees Should Absolutely Love

These three dividend stocks are perfect for retirees wanting not just income, but growth in shares for the foreseeable future.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Passive Income: How to Make $106 Per Month Tax Free

Holding quality, high-yield dividend stocks such as Freehold Royalties in a TFSA can help you earn tax-free income for life.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Earn a TFSA Paycheque Every Month and Pay No Taxes on it

Stocks like First National Financial (TSX:FN) pay you monthly. You can also earn monthly dividends through portfolio diversification.

Read more »

woman analyze data

Why I’d Buy Nvidia Stock Even at Today’s Prices

Nvidia’s dominant position in the AI space and the ongoing demand for its GPUs suggest that the stock’s upward trajectory…

Read more »

stock analysis
Dividend Stocks

1 Dividend Superstar I’d Buy Over TD Bank Stock

TD (TSX:TD) stock may look undervalued, but there are reasons for the price drop. Meanwhile, this dividend superstar has more…

Read more »