The Canadian equities market turned negative on Tuesday as the Federal Reserve chair Jerome Powell, in his testimony on the semiannual monetary policy report to Congress, highlighted the delicate balance the central bank must maintain, warning against reducing policy restraint too soon or too late. In addition, continued declines in crude oil prices drove the S&P/TSX Composite Index down by 84 points, or 0.4%, to 22,043.
Despite positive movement in some financial stocks, most other main market sectors, like industrials, energy, technology, and healthcare, posted heavy losses, pressuring the TSX benchmark.
Top TSX Composite movers and active stocks
Badger Infrastructure Solutions, Birchcliff Energy, Aya Gold & Silver, and Trisura Group were the worst-performing TSX stocks for the day, sliding by at least 3.4% each.
In contrast, shares of Maple Leaf Foods (TSX: MFI) rallied by 8.7% to $24.40 per share after announcing intentions to spin off its pork business into a separate entity, creating two independent public companies. After the planned spin-off, Maple Leaf Foods will focus on its brand-led consumer packaged goods and sustainable protein production, while the new Pork Company, led by Dennis Organ, will concentrate on sustainable, high-quality pork products.
The Mississauga-headquartered company also highlighted how this spinoff, expected to be completed in 2025, is likely to enhance growth and value creation for both businesses, with Maple Leaf retaining a 19.9% stake in the new Pork Company. Despite the recent rally, MFI stock is still down 3.3% on a year-to-date basis and offers a 3.9% annualized dividend yield.
Altus Group and Energy Fuels were also among the top performers on the Toronto Stock Exchange as they rose by at least 2.7% each.
Based on their daily trade volume, TD Bank, Canadian Natural Resources, TC Energy, Royal Bank of Canada, and Canadian Imperial Bank of Commerce were the five most active stocks on the exchange.
TSX today
Crude oil and base metals prices continued to extend their losses for the third consecutive session early Wednesday morning. At the same time, gold and silver prices were showcasing strength. Given these mixed signals, I expect the commodity-heavy main TSX index to remain largely flat at the open today.
While no major domestic economic releases are due this morning, Canadian investors will continue to monitor Powell’s testimony before the U.S. Senate Committee on the second day for clues that might guide the stock market.
Market movers on the TSX today
