Canadian stocks inched up to their highest closing level in more than 22 months as strong corporate earnings, surging metals prices, and expectations of interest rate cuts in the near term kept optimism alive. The S&P/TSX Composite Index advanced by 201 points, or 0.9%, on Thursday to settle at 21,795 — extending its month-to-date gains to 2%.
While most main sectors ended the session in green territory, the TSX rally was mainly driven by solid gains in consumer noncyclical, utility, and technology stocks.
Top TSX Composite movers and active stocks
Shares of Linamar (TSX:LNR) jumped by 11.4% to $70.82 per share, making it the top-performing TSX stock for the day. These healthy gains in LNR stock came a day after the Guelph-headquartered advanced manufacturing firm announced its much better-than-expected December quarter financial results.
In the fourth quarter, Linamar saw a 19.1% increase in sales year over year, reaching $2.5 billion, driven by strong growth in industrial and mobility segments. This surge contributed to a record annual sales total of $9.7 billion for 2023. The company’s adjusted quarterly earnings of $1.98 per share were up nearly 23% from a year ago, beating Street analysts’ expectations of $1.74 per share by a wide margin. On a year-to-date basis, LNR stock now trades with 10.6% gains.
Brookfield Renewable Partners, Denison Mines, and Capstone Copper were also among the top performers on the Toronto Stock Exchange, as they rose by at least 5.8% each.
Conversely, Vermilion Energy and Lithium Americas (Argentina) dived by at least 4.5% each, making them the day’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Enbridge, Cenovus Energy, Manulife Financial, and Suncor Energy stood out as the most heavily traded stocks on the exchange.
TSX today
Most commodity prices, especially gold, silver, and copper, continued to rally early Friday morning, which could lift the main TSX index at the open today. Besides the domestic labour market data, Canadian investors will also closely monitor average hourly earnings, non-farm payrolls, and unemployment rate numbers from the United States this morning, which could give further direction to stocks.
Overall, the main TSX benchmark seems on track to end the fourth consecutive week on a positive note, as it has already risen 1.1% week to date.
On the corporate events side, Canadian companies like AltaGas, Kelt Exploration, and Algonquin Power & Utilities are expected to announce their latest quarterly results on March 8.
Market movers on the TSX today
