Canadian equities market remained choppy on Monday after surging by 2.9% last week, as speculations about the Bank of Canada’s upcoming policy move continued. The S&P/TSX Composite Index ended the session with a 57-point, or 0.3%, increase at 18,918. Despite healthy gains in industrials, utilities, and consumer sectors, an intraday weakness in metals prices drove the shares of mining companies lower to limit the index’s gains. Also, largely worse-than-expected Canadian corporate earnings took a toll on investor sentiments.
Top TSX movers and active stocks
Shares of NFI Group (TSX:NFI) crashed by 18.6% in the last session to settle at $9.45 per share after the company released its preliminary third-quarter results and lowered its full-year guidance. The Canadian bus manufacturer warned that inflationary pressures, supply chain disruptions, and unavailability of certain critical parts and components could affect its vehicle deliveries in the fourth quarter. While these updates triggered a sharp selloff in its stock, NFI Group also noted that the demand for its vehicles is strong, as its backlog remains near record levels. On a year-to-date basis, NFI stock now trades with 53.4% losses.
First Quantum Minerals and OceanaGold were also among the biggest losers on the TSX yesterday, as they fell by more than 7%.
On the positive side, Tamarack Valley Energy, Headwater Exploration, TFI International, and MEG Energy rose by over 4% each, making them the top-performing TSX stocks for the day.
Based on their daily trade volume, Enbridge, Suncor Energy, Toronto-Dominion Bank, and Crescent Point Energy were the most active stocks on the exchange.
Early Tuesday morning, metals prices continued to extend yesterday’s losses, pointing to a lower open for metal mining TSX stocks today. While Canadian investors should keep an eye on the latest consumer confidence data from the U.S. market this morning, they may want to remain cautious ahead of the Bank of Canada’s interest rate decision scheduled for Wednesday.
Overall, I expect the main TSX index to remain volatile, as the third-quarter corporate earnings season gains steam. On October 25, First Quantum Minerals, Canadian National Railway, and Lundin Mining will announce their quarterly results after the market closing bell.