After trading on a weak note for two consecutive sessions, Canadian stocks regained strength on Wednesday as the Bank of Canada (BoC) reduced interest rates by another 50 basis points, and U.S. consumer inflation data came in line with the expectations. These factors, coupled with sharp gains in commodity prices, drove the S&P/TSX Composite Index by 153 points, or 0.6%, to 25,658.
Despite weakness in many key sectors, including healthcare and utilities, healthy gains in mining, technology, and energy stocks were enough to push the TSX benchmark higher and revive investor confidence.
In his monetary policy press conference, BoC governor Tiff Macklem noted that inflation has returned to the 2% target, which allows the policy to shift its focus toward sustaining price stability while supporting economic growth.
Top TSX Composite movers and active stocks
An intraday rally in gold prices drove NovaGold Resources, SSR Mining, Equinox Gold, and New Gold up by more than 6% each, making them the top-performing TSX stocks for the day.
In contrast, Parex Resources (TSX:PXT) fell 7.6% to $13.25 per share after an operational update and new partnership details with Ecopetrol. The company is expanding its footprint in Colombia with new blocks in the Putumayo and Llanos Foothills regions. Still, investors seemed rattled by the news of the abandonment of the Arantes exploration well due to technical issues.
Notably, Parex’s November production also took a hit from social protests and equipment downtime, which added to the concerns. While management remains confident about the long-term potential of these new projects, the near-term challenges appear to be weighing on market sentiment. Year to date, PXT stock is now down 47%.
Bausch Health Companies and Telus were also among the session’s bottom performers on the Toronto Stock Exchange, as they dived by at least 3.8% each.
Based on their daily trade volume, Canadian Natural Resources, Pembina Pipeline, Toronto-Dominion Bank, Enbridge, and Cenovus Energy were the five most heavily traded stocks on the exchange.
TSX today
Metals prices were largely bullish early Thursday morning, which could extend their upward momentum in the TSX mining sector at the open today.
While no major domestic economic releases are due, Canadian investors will keep an eye on the wholesale inflation for November and weekly jobless claims data from the United States this morning.
On the corporate events front, TSX-listed Enghouse Systems and Empire Company will announce their latest quarterly results on December 12.
Market movers on the TSX today
