Canadian stocks traded on a weak note for the second consecutive session as a selloff in commodity prices, with no clarity yet on China’s anticipated stimulus measures, weighed on investors’ sentiments. The S&P/TSX Composite Index fell 30 points on Tuesday to settle at 24,073, trimming its year-to-date gains to less than 15%.
On the one hand, expectations of brighter economic prospects amid declining interest rates drove industrial and tech stocks higher. On the other hand, large intraday losses in commodity-linked sectors like energy and mining dragged the overall market down, reflecting the pressure from falling prices.
Top TSX Composite movers and active stocks
Advantage Energy (TSX:AAV) slipped by more than 6% to $9.25 per share, making it one of the worst-performing TSX Composite components for the day. This drop in AAV stock followed the Calgary-headquartered natural gas and oil producer’s announcement of strategic production curtailments of up to 130 million cubic feet per day of dry gas in response to unusually low Alberta natural gas prices.
In a press release, Advantage noted that it initiated the planned production cuts in September and expects to continue these measures through the fourth quarter until there is a meaningful improvement in natural gas prices. The company expects these measures to help it reduce variable costs and defer development capital while its liquids production remains unaffected. AAV stock is now up 8.4% year-to-date.
Mattr, Teck Resources, and Hudbay Minerals were also among the bottom performers on the Toronto Stock Exchange, with each diving by at least 4.8%.
On the flip side, South Bow, Energy Fuels, Badger Infrastructure Solutions, and CI Financial rose by at least 2.8% each, marking them as the session’s top-performing TSX stocks.
According to the exchange’s trade volume data, Toronto-Dominion Bank, Canadian Natural Resources, Baytex Energy, Enbridge, and TC Energy were the top five most active stocks on the exchange for the second straight day.
TSX today
Most commodity prices, especially metals, continued to extend their downward trend early Wednesday morning, suggesting further pressure on TSX mining stocks at the open today. The delays in China’s stimulus measures could also present a temporary headwind for global equities, with the World Bank projecting China’s growth to slow down further in 2025.
While no major domestic economic releases are due, Canadian investors will keep an eye on the latest weekly U.S. crude oil stockpiles this morning, which may lead to increased volatility in energy stocks.
In the afternoon, TSX investors’ focus will shift to the Federal Reserve’s September meeting minutes, which could give a clearer view of the U.S. central bank’s potential path for rate cuts.
Market movers on the TSX today
