TSX Today: What to Watch for in Stocks on Monday, September 19

With speculations about the U.S. Fed’s upcoming policy move and economic projections, TSX stocks could remain highly volatile in the next few sessions.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published September 19, 2022 8:04 am EDT

Canadian equities continued to slide on Friday to end the fourth out of the last five weeks in the red. Investors continued to cut their risk exposure ahead of this week’s U.S. Federal Reserve’s interest rate decision. As a result, the TSX Composite Index fell by 174 points, or 0.9%, on September 16 to settle at 19,386. While nearly all key sectors trended downward in the last session, shares of healthcare, industrials, technology, and energy companies mainly led the market selloff.

Top TSX movers and active stocks

Cargojet, Canopy Growth, Brookfield Business Partners, Vermilion Energy, and Shopify were the worst-performing TSX stocks Friday, as they fell by at least 6% each.

On the positive side, Labrador Iron Ore Royalty (TSX: LIF) was the top-performing TSX Composite component in the last session, as it rose by 5.6% to $31.20 per share. This rally in LIF stock came a day after the Toronto-based royalty company announced its third-quarter dividend of $1 per share, reflecting an increase of around 11% over its second-quarter dividend of $0.90 per share. Labrador Iron Ore currently has a solid annual dividend yield of more than 11%. However, its stock has lost nearly 17% of its value in 2022 so far due mainly to recent weakness in commodity prices.

Shares of metal miners like Capstone Copper, Centerra Gold, New Gold, and Dundee Precious Metals were also among the top gainers on September 16, as they rose by at least 3.5% each with the help of an intraday recovery in silver and copper prices.

Based on their daily trade volume, Baytex Energy, New Gold, Suncor Energy, and Cenovus Energy were the most active stocks on the exchange.

TSX today

Most key Asian and European indexes traded on a negative note on Monday. Similarly, commodity prices across the board were showcasing weakness early this morning, pointing to a lower opening for the commodity-heavy main TSX index today. Overall, I expect stocks to remain highly volatile in the next few sessions, as investors continue to speculate about the Fed’s upcoming policy move and economic projections scheduled for Wednesday this week.