Canadian stocks continued to trade on a positive note for the second consecutive session on Thursday with the help of a sharp rally in commodity prices across the board. The S&P/TSX Composite Index rose by 172 points, or 0.9%, for the day to settle at 19,413, despite the U.S. Federal Reserve chair Jerome Powell’s latest statement indicating continued aggressive rate hikes in the near term. While nearly all key sectors traded on a positive note, shares of metals mining companies and companies from financials, industrials, and technology sectors led the broader market rally.
Top TSX movers and active stocks
Shares of the Canadian uranium firm Nexgen Energy (TSX:NXE)(NYSE:NXE) popped by 10% yesterday to $6.07 per share. In the last few days, news reports have claimed that some countries are trying to reopen their idled nuclear power plants to give a boost to their energy supply amid consistently rising oil prices, which could be the primary reason for a recent rally in uranium stocks.
While the recent movement in NXE stock looks impressive, long-term investors may want to remain cautious due to its seemingly weak fundamental outlook and high stock volatility. Year to date, Nexgen stock now trades with 9.6% gains.
Dye & Durham, Lithium Americas, First Quantum Minerals, and Denison Mines were also among the best-performing TSX Composite components, as they rose by more than 7% each Thursday.
In contrast, North West Company, Bausch Health Companies, Equinox Gold, and Canada Goose were among the worst-performing stocks on the exchange, as they fell by at least 3% each.
Based on their daily trade volume, Suncor Energy, Cenovus Energy, Barrick Gold, and Canadian Natural Resources were among the most active stocks on the TSX.
Early Friday morning, commodity prices across the board were trading on a strong bullish note, pointing to a higher opening for TSX stocks today. Canadian investors may want to watch the employment change numbers this morning, which could give further direction to the stock market.
On the corporate events front, the Canadian value retailer Dollarama is expected to report its July quarter results today. Street analysts expect the company to register a 32.4% year-over-year increase in its quarterly earnings to $0.64 per share.