Canadian stocks largely remained choppy on Tuesday but managed to end their fifth consecutive session in green territory. The S&P/TSX Composite Index rose by 89 points, or 0.4%, to settle at 20,270.
Despite high domestic inflation numbers for July, easing concerns about slowing global economic growth seems to be helping investors be optimistic. This could be one of the reasons why key sectors on the TSX like consumer, metals and mining, financials, industrials, and technology showcased strength. In contrast, in intraday trading yesterday, WTI crude oil futures prices reached their lowest level since January — triggering a selloff in energy stocks.
Top TSX movers and active stocks
First Quantum Minerals, Ero Copper, Canadian Tire, Gildan Activewear, and NFI Group were the top five gainers on the TSX, as they rose by at least 3% each.
Exchange Income (TSX:EIF) stock dived by 6% to $40.36 per share on Tuesday — a day after the company announced a bought deal share offering. The acquisition-oriented company said in a press release that it has entered an agreement to sell more than two million common shares on a bought deal basis from treasury to a syndicate of underwriters for $48.70 per share. Exchange Income plans to utilize the net proceeds of the offering “to pay down funded debt, until required for future acquisitions or growth opportunities.” Losses from the last session trimmed EIF stock’s year-to-date gains to about 15%.
Shares of Dye & Durham, MEG Energy, and Baytex Energy also fell by at least 4.5% each on August 16, making them among the worst-performing TSX Composite components for the day.
Based on their daily trade volume, Enbridge, Manulife Financial, Suncor Energy, and Canadian Natural Resources were the most active stocks on the exchange.
Early Wednesday morning, commodity prices across the board were trading on a bearish note, which could take commodity-linked stocks on the TSX lower at the open today. While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest retail sales and crude oil stockpiles data from the U.S. market this morning. The U.S. Federal Open Market Committee’s July meeting minutes are also expected to be made public today, which could give further direction to the stock market — especially the tech sector.