TSX Today: What to Watch for in Stocks on Tuesday, February 28

The main TSX index is on the path to end February in red after posting solid 7.1% gains in January.

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The Canadian equities market started the new week on a slightly positive note, as investors continued to assess the possibility of more rate hikes. The S&P/TSX Composite Index advanced by 41 points, or 0.2%, during Monday’s volatile session to settle at 20,260, as much stronger-than-expected durable goods orders and pending home sales data from the U.S. market kept optimism alive.

While shares of consumer noncyclical and healthcare companies posted heavy losses, a recovery in other key market sectors like metal and mining, industrials, and consumer cyclicals helped the index end the session with minor gains.

Top TSX Composite movers and active stocks

Shares of Uni-Select (TSX:UNS) jumped 16.6% to $46.97 per share, making it the top performer on the Toronto Stock Exchange for the day. This sharp rally in UNS stock came after the American auto parts giant LKQ Corporation announced intentions to acquire Uni-Select in an all-cash transaction for $48 per share, which was 19.2% higher than UNS stock’s Friday closing price of $40.28 per share.

LKQ expects this acquisition deal to drive roughly US$55 million run-rate cost synergies. The transaction is expected to close in the second half of this year after getting the required regulatory approvals. After yesterday’s rally, Uni-Select’s share prices are now up 9.6% on a year-to-date basis.

Metals and mining stocks like Hudbay Minerals, Ero Copper, and First Quantum Minerals were also among the top-performing TSX stocks yesterday, as they inched up by at least 5% each with the help of an intraday recovery in gold and copper prices.

In contrast, Advantage Energy, Cargojet, Tilray Brands, and Sienna Senior Living fell by at least 2.8% each, making them the worst performers for the day.

Based on their daily trade volume, Manulife Financial, Enbridge, Suncor Energy, and Barrick Gold were the most active Canadian stocks.

TSX today

Crude oil and natural gas prices were trading on a bullish note early Tuesday morning, which should lift TSX energy stocks at the open today. However, the main TSX index is on the path to end February in red, as it currently trades with 2.4% month-to-date losses after posting solid 7.1% gains in January.

Besides domestic gross domestic product for December, Canadian investors may want to keep an eye on the latest monthly consumer confidence numbers from the United States this morning.

On the corporate events side, TSX-listed companies, including Canfor, Artis REIT, Cronos Group, Laurentian Bank of Canada, Bank of Nova Scotia, and Bank of Montreal, are expected to release their latest quarterly results on the final trading day of February.

Market movers on the TSX today

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.

The Motley Fool has positions in and recommends Cargojet. The Motley Fool recommends Bank Of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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