Canadian stocks started the new week on a strong note as firm commodity prices and hopes of a steep interest rate cut in the United States lifted investors’ confidence. The S&P/TSX Composite Index rose by 133 points, or 0.6%, for the day to settle at 23,702 — extending its gains for the fourth consecutive session and achieving a new record high for the third straight day.
Momentum in the healthcare and energy sectors led the market rally, with oil prices surging to their highest level in over a week. Similarly, most consumer cyclical and technology stocks saw strong gains, reflecting growing confidence that the American central bank might ease monetary policy.
Top TSX Composite movers and active stocks
Bausch Health Companies and B2Gold were the top-performing TSX stocks yesterday, with each climbing by more than 5%.
Air Canada (TSX:AC) was also among the top performers on the Toronto Stock Exchange as its share price jumped by 3.5% to $16.40 per share. This rally in AC stock came a day after the Canadian flag carrier reached a tentative four-year collective agreement with the Air Line Pilots Association (ALPA).
Although the agreement will remain confidential until ratified by ALPA members and approved by the Air Canada board of directors, this move apparently averts any potential labour disruptions that could have impacted Air Canada’s operations in the near term. Last week, the largest Canadian passenger airline company urged the federal government to consider binding arbitration if negotiations with the ALPA fail. On a year-to-date basis, Air Canada stock is still down 12.3%.
In contrast, Ballard Power Systems, NovaGold Resources, Kinross Gold, and BRP each slid by at least 3.4%, making them the session’s worst-performing TSX Composite components.
According to the exchange’s daily trade volume data, Canadian Natural Resources, Cenovus Energy, TD Bank, Enbridge, and B2Gold were the five most active stocks.
TSX today
After staging a recovery for four consecutive sessions, West Texas Intermediate crude oil futures prices fell by over 2% early Tuesday morning. Also, gold prices were easing from their record highs. Given that, the commodity-heavy main TSX index could remain under pressure at the open today.
Besides the domestic consumer inflation report for August, Canadian investors will closely monitor monthly retail sales data from the United States this morning, which could give further direction to stocks.
With the Federal Reserve’s interest rate decision looming tomorrow, volatility is likely to persist in TSX stocks today.
Market movers on the TSX today
