TSX Today: What to Watch for in Stocks on Thursday, June 1

An early morning recovery in oil and base metals prices could help the commodity-heavy TSX index start the new month with optimism.

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tsx today

The Canadian stock market posted heavy losses for the second consecutive session, as slower-than-expected monthly gross domestic product growth and the possibility of more interest rate hikes weighed on investors’ sentiments. These negative factors, along with falling oil and base metals prices, drove the S&P/TSX Composite Index down by 167 points, or 0.8%, Wednesday to close at 19,572.

Despite optimism related to the U.S. debt-ceiling deal progress, most TSX sectors, including consumer cyclicals, energy, healthcare, and financials, witnessed big declines. With this, the main Canadian market index ended May month with 5.2% losses.

Top TSX Composite movers and active stocks

Shares of CAE (TSX:CAE) tanked more than 7% yesterday to $27.76 per share after its quarterly results came out. In the fourth quarter of its fiscal year 2023 (ended in March), the Montréal-headquartered aerospace electronics firm’s revenue increased by 31.6% year over year to $1.3 billion due mainly to a solid 53% jump in its civil aviation segment sales.

CAE’s adjusted quarterly earnings climbed 20.7% to $0.35 per share, exceeding Street analysts’ expectation of $0.34 per share. However, its adjusted net profit margin contracted from 9.6% a year ago to 8.8% in the March 2023 quarter, making investors worried. Wednesday’s selloff trimmed CAE stock’s year-to-date gains to 6%.

Ero Copper, Eldorado Gold, Tilray Brands, and Ivanhoe Mines were also among the worst-performing TSX stocks in the last session, as they tanked by more than 6% each.

On the positive side, Centerra Gold, Osisko Mining, Sandstorm Gold, and Denison Mines were among the top gainers on the Toronto Stock Exchange, as they rallied by at least 4.3% each.

Based on their daily trade volume, Suncor Energy, Manulife Financial, Enbridge, and Cenovus Energy stood out as the most active stocks on the exchange.

TSX today

Commodity prices, especially oil and base metals, were largely bullish early Thursday morning, which could help the TSX index start June with optimism after posting 2023’s biggest monthly losses so far in May. While no major domestic economic releases are due, Canadian investors may want to closely monitor the latest monthly manufacturing, non-farm employment, and weekly crude oil inventories from the U.S. market this morning.

On the corporate events side, TSX-listed companies BRP, Laurentian Bank of Canada, and Descartes Systems are expected to announce their latest quarterly results on June 1.

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 recommends Brp, Centerra Gold, Descartes Systems Group, Enbridge, and Sandstorm Gold. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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