Consistently declining crude oil and metals prices drove Canadian equities downward for a second consecutive session on Tuesday, even though slightly worse-than-expected U.S. job openings data heightened investors’ hopes for interest rate cuts. The S&P/TSX Composite Index fell 139 points, or 0.6%, yesterday to settle at 21,978 — closing below the important 22,000 level for the second time in a month.
Despite heavy losses in most commodity-linked stocks, gains in other key sectors, including industrials and technology, helped limit the day’s losses for the TSX benchmark.
Top TSX Composite movers and active stocks
Mining stocks like SSR Mining, Energy Fuels, Ero Copper, Pan American Silver, and Ivanhoe Mines tanked by at least 6.5% each, making them the worst-performing TSX stocks for the day.
On the positive side, shares of Russel Metals (TSX: RUS) surged by nearly 5% to $30.09 per share, making it the top performer on the Toronto Stock Exchange. This rally in RUS stock came after the Mississauga-headquartered metals distribution firm told investors that it has received regulatory clearance from the Canadian Competition Bureau for its acquisition of seven service centre locations from Samuel Son & Co.
Russel now expects the transaction to close in the third quarter of 2024 after the completion of customary closing conditions. Despite the recent rally, however, RUS stock is still down around 15% on a year-to-date basis and offers a decent 4.6% annualized dividend yield.
GFL Environmental, Enghouse Systems, and Innergex Renewable Energy were also among the day’s top-performing TSX stocks as they inched up by at least 4.3% each.
According to the exchange’s daily trade volume data, Suncor Energy, Canadian Natural Resources, Baytex Energy, Cenovus Energy, and Barrick Gold were the five most active stocks.
TSX today
After falling sharply for several consecutive sessions, crude oil and gold prices witnessed minor recovery early Wednesday morning, which could lift TSX commodity-linked stocks at the open today.
Besides the non-farm employment change, non-manufacturing purchasing managers index (PMI), and services PMI data from the United States, Canadian investors will closely watch the Bank of Canada’s interest rate decision this morning, which could give further direction to stocks. In the afternoon, the Canadian central bank’s press conference will remain on the market’s radar.
On the corporate events side, TSX-listed companies Transcontinental and North West Company are expected to announce their latest quarterly results on June 5.
Market movers on the TSX today
