Despite sharp declines in metals prices, Canadian stocks trended upward on Monday as investors largely reacted positively to the Federal Reserve chair Jerome Powell’s comments about the economic outlook and monetary policy. The S&P/TSX Composite Index advanced by 44 points, or 0.2%, to close just above the key 24,000 level. With 9.7% gains in the third quarter, the index posted its best quarterly performance in over four years.
Even though weakness in gold, silver, and copper prices triggered a selloff in mining stocks yesterday, solid gains in other key sectors, including consumer, real estate, technology, and industrials, drove the TSX benchmark higher.
Speaking at the National Association for Business Economics Annual Meeting, Powell expressed confidence in the ongoing strength of the U.S. economy and highlighted substantial progress in reducing inflation. He emphasized that future rate cuts will be data-dependent, noting that the Fed is not following a preset course. These remarks apparently fueled market optimism, as investors saw it as a sign that the Fed could lower rates further in the near term if needed.
Top TSX Composite movers and active stocks
BlackBerry, Transcontinental, Aritzia, and Birchcliff Energy were the top-performing TSX stocks for the day, with each climbing by at least 2.7%.
Shares of Kinaxis (TSX: KXS) also trended up by 2.4% to $160.67 per share, making it among the day’s top performers on the Toronto Stock Exchange. This rally in KXS stock came after the Ottawa-based announced that Mahindra & Mahindra (M&M), one of India’s largest vehicle manufacturers, has selected Kinaxis to improve its supply chain planning.
By using Kinaxis’s platform, M&M expects to increase efficiency, gain better transparency, and respond quickly to changes in demand and supply. Kinaxis investors reacted positively to this deal as it further solidified its growing position in the global automotive industry. After yesterday’s 2.4% climb, KXS stock now trades with 8% year-to-date gains.
In contrast, SSR Mining, First Majestic Silver, Magna International, and SilverCrest Metals slid by at least 3.9% each, making them among the session’s worst-performing TSX stocks.
Based on their daily trade volume, TC Energy, Toronto-Dominion Bank, Canadian Natural Resources, Suncor Energy, and Bank of Nova Scotia were the five most active stocks on the exchange.
TSX today
After reaching close to its historical highs in the previous session, the main TSX index could start the new month on a flat note today as commodity prices across the board were largely mixed early Tuesday morning.
While no major domestic economic releases are due, Canadian investors will closely monitor the important manufacturing and job openings data from the United States, which could give further direction to stocks.
Market movers on the TSX today
