Falling crude oil, natural gas, and base metals prices kept Canadian stocks range-bound on Wednesday, even though the Bank of Canada (BoC) slashed the policy interest rates by another 25 basis points to 4.25%, marking the third rate cut in a row since June. The S&P/TSX Composite Index ended the volatile session at 23,041 without any major change from its previous closing level.
Although commodity-linked sectors, including energy and mining, declined sharply for a second consecutive day, strong gains in real estate, healthcare, and utility stocks helped offset TSX losses.
In its latest statement, the Canadian central bank cited continuous easing inflationary pressures, as headline inflation slowed to 2.5% in July. While high shelter costs remain the biggest contributor to overall inflation, they are starting to decline. During his press conference, BoC governor Tiff Macklem highlighted the need for economic growth to absorb excess slack in the economy.
Top TSX Composite movers and active stocks
Torex Gold Resources (TSX:TXG) was one of the worst-performing TSX stocks yesterday, sliding by 4.3% to $24 per share as precious metals prices remained under pressure. This selloff in TXG stock came before the Canadian gold mining firm updated its life-of-mine plan for the Morelos Complex, integrating the EPO (exclusive prospecting order) underground deposit.
In a press release after the market closing bell, Torex projected the addition of EPO mineral reserves to help it maintain an annual production level of at least 450,000 gold equivalent ounces through 2030. The miner estimates upfront capital expenditures for EPO to be US$81.5 million and expects the first ore production from EPO in late 2026. Despite recent weakness, TXG stock is still up 64.2% on a year-to-date basis.
Canada Goose, ATS, and PrairieSky Royalty also fell by more than 3% each, placing them among the day’s bottom performers on the Toronto Stock Exchange.
On the flip side, Innergex Renewable Energy, Brookfield Renewable Partners, RioCan REIT, and InterRent REIT were the session’s top-performing TSX stocks, with each climbing by at least 3.2%.
Based on their daily trade volume, Suncor Energy, Canadian Natural Resources, Great-West Lifeco, Manulife Financial, and TC Energy were the most active stocks on the exchange.
TSX today
Crude oil, natural gas, and copper prices were bearish early Thursday morning, but gold and silver prices witnessed a minor recovery overnight. Given these mixed signals, the commodity-heavy TSX index is likely to remain flat at the open today.
While no major domestic economic releases are due, several important economic releases from the United States, including monthly non-farm employment change, services PMI (purchasing managers’ index), non-manufacturing PMI, and weekly jobless claims, will remain on Canadian investors’ radar today.
On the corporate events side, the TSX-listed Enghouse Systems will announce its latest quarterly results after the market closing bell on September 5. Bay Street analysts expect the software company to post earnings of US$0.36 per share for the July quarter with US$129.7 million in revenue.
Market movers on the TSX today
