The ongoing rally in the Canadian stock market gained pace on Thursday as stable U.S. personal consumption expenditure data and Canada’s weaker-than-expected gross domestic product growth figures gave hope to investors that the central banks might not need to raise interest rates further. The S&P/TSX Composite Index inched up by 120 points, or 0.6%, yesterday to settle at 20,236, near its highest closing level in more than two months.
With this, the index ended November 2023 with solid 7.2% gains, marking its best monthly performance after November 2020.
Top TSX Composite movers and active stocks
International Petroleum and Ivanhoe Mines were the top-performing TSX stocks, as they rallied by at least 9.9% each.
Shares of Canadian Imperial Bank of Commerce (TSX:CM) were also among the top performers, as they surged more than 5% to $53.36 per share. This renewed buying in CM stock came after the Toronto-headquartered lender announced its better-than-expected quarterly earnings.
In the quarter ended in October 2023, Canadian Imperial Bank’s revenue rose 8.5% YoY (year over year) to $5.8 billion but missed analysts’ estimates by a narrow margin. Nonetheless, its adjusted quarterly earnings jumped around 13% from a year ago to $1.57 per share, beating Street analysts’ expectations of $1.53 per share with the help of robust performance of its Canadian banking and capital markets operations. After this rally, CM stock is now up 2.4% year to date.
In contrast, BRP (TSX:DOO) became the worst-performing TSX stock yesterday after tanking by 11.8% to $83.80 per share due mainly to its dismal third-quarter revenue and earnings. Weaker shipment volume, along with lower personal watercraft and three-wheel vehicle deliveries, drove its revenue down by 8.9% YoY last quarter. These negative factors and higher costs due to inflationary pressures also caused the Valcourt-based power sports vehicle maker’s adjusted quarterly earnings to slip by 15.9% from a year ago, hurting investors’ sentiments. Year to date, DOO stock is now down 18.8%.
Canfor, Osisko Mining, and Interfor were also among the bottom performers on the Toronto Stock Exchange on the final day of November, as they dived by at least 5.6% each.
According to the exchange’s daily volume data, Manulife Financial, MEG Energy, Canadian Natural Resources, Suncor Energy, and Cenovus Energy were the five most active stocks.
Metals prices were trading on a slightly positive note early Friday morning, which could lift TSX mining stocks at the open today. Besides the domestic labour market numbers, Canadian investors may also want to closely monitor the important manufacturing data from the United States this morning.
Later during the day, the Federal Reserve chair Jerome Powell will participate in a discussion at a Fireside Chat at Spelman College in Atlanta. His comments about the economy and monetary policy during the event could make TSX stocks volatile.
As the Canadian banking sector earnings season continues, Bank of Montréal and National Bank of Canada will announce their latest quarterly results on December 1.