Weakening commodity prices drove the Canadian stock market downward for the third straight day on Wednesday, despite the growing possibility that the central banks in the United States and Canada might soon pause interest rate hikes. The S&P/TSX Composite Index slipped by 45 points, or 0.2%, to settle at 19,530, its second-lowest closing level so far in November.
Despite consistent buying in sectors like industrial and technology, weakness in healthcare, metal mining, and energy stocks pressured the main TSX index.
Top TSX Composite movers and active stocks
Pan American Silver, First Quantum Minerals, Endeavour Silver, and Athabasca Oil were the worst-performing TSX stocks for the day, as they dived by at least 5.5% each.
On the positive side, shares of Nuvei (TSX: NVEI) rallied by about 20% yesterday to $26 per share, making it the top-performing TSX stock for the day. This buying spree in NVEI stock came after the Montréal-headquartered payment technology solutions provider announced its quarterly financial results before the market opening bell.
In the third quarter of 2023, Nuvei’s revenue rose 54.6% YoY (year over year) to US$220.3 million with the help of a solid 72% increase in its total volume. Although a higher net finance cost drove its adjusted earnings down by 9.3% YoY last quarter to US$0.39 per share, its strengthening volumes encouraged the company to raise its full-year outlook. An upward revision in its 2023 guidance seemingly boosted investors’ confidence to trigger a rally in NVEI stock, trimming its year-to-date losses to 24.4%.
ATS, Intact Financial, Brookfield Business Partners, and goeasy were also among the top performers on the Toronto Stock Exchange, as they climbed up by at least 4.4% each.
Based on their daily trade volume, Suncor Energy, Baytex Energy, Canadian Natural Resources, and Enbridge stood out as the most heavily traded stocks on the exchange.
TSX today
After declining for four consecutive sessions, crude oil and natural gas prices witnessed a minor recovery in early Thursday morning. At the same time, however, metals prices across the board were extending their losses. Given these mixed signals, I expect the commodity-heavy main TSX benchmark to remain flat at the open today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the weekly jobless claims numbers from the United States and the Federal Reserve chair Jerome Powell’s comments about the economy during a policy panel discussion at the 24th Jacques Polak Annual Research Conference in Washington, DC today.
As third-quarter earnings season remains in full swing, several TSX-listed companies, including Stantec, Altus, Exchange Income, Sleep Country Canada, Northland Power, Sienna Senior Living, Chartwell Retirement Residences, IAMGOLD, Saputo, Quebecor, Park Lawn, Canadian Tire, Rogers Communications, Boralex, CI Financial, and Definity Financial, are expected to announce their latest quarterly results on November 9.
Market movers on the TSX today
