The Canadian equities market continued to climb for the fourth consecutive session on Wednesday, despite the release of hotter-than-expected wholesale inflation numbers, as the Fed’s September meeting minutes hinted that the latest round of interest rate hikes might be near an end. The S&P/TSX Composite Index advanced by 163 points, or 0.8%, yesterday to 19,664, its highest closing level in over two weeks.
Even as healthcare stocks slid down in the last session, healthy gains in other key market sectors like utilities, consumer cyclicals, and real estate helped the TSX benchmark remain positive.
The latest FOMC (Federal Open Market Committee) meeting minutes revealed how “a majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, while some judged it likely that no further increases would be warranted.”
Top TSX Composite movers and active stocks
Spin Master, Silvercrest Metals, Eldorado Gold, and Cogeco Communications were the top-performing TSX stocks, gaining more than 4% each.
In contrast, shares of Denison Mines (TSX: DML) dived nearly 10% to $2 per share, trimming its year-to-date gains to 29%. This selloff in DML stock came a day after the Toronto-based uranium company announced a bought deal offering.
In a press release, Denison told investors it had struck a deal with Cantor Fitzgerald Canada for a bought deal offering of 37 million shares at US$1.49 per share, totalling around US$55.13 million. Also, an over-allotment option could potentially bring in up to about US$8.27 million more if exercised by October 16, 2023. DML plans to use the offering’s proceeds to advance the proposed Phoenix in-situ recovery uranium mining operation, exploration, evaluation, and general corporate needs.
Lithium Americas (Argentina), Lithium Americas, and Bausch Health Companies were also among the worst performers on the Toronto Stock Exchange yesterday, as they plunged by at least 4.7% each.
Based on their daily trade volume, Toronto-Dominion Bank, Canadian Natural Resources, Suncor Energy, and TC Energy were the most active stocks on the exchange.
TSX today
After witnessing a sharp rally earlier this week due to the Israel-Hamas conflict, West Texas Intermediate crude oil futures prices eased sharply in the last session. Despite continued sideways movement in oil, most other commodities, especially natural gas and metals, were trading on a firm note early Thursday morning, pointing to a slightly higher open for the TSX benchmark today.
While no domestic economic releases are due, Canadian investors will closely monitor the monthly consumer inflation report, weekly jobless claims, and crude oil stockpiles from the United States this morning, which could give further direction to TSX stocks.
Market movers on the TSX today
