Canadian stocks fell for a second consecutive session on Friday as recently released hotter-than-expected U.S. wholesale inflation data made investors skeptical about the pace of future interest rate cuts by the Federal Reserve. The S&P/TSX Composite Index slipped by 136 points, or 0.5%, for the session to settle at 25,274, marking its lowest close since November 20.
Nearly all key market sectors ended the day in negative territory, with the selloff primarily driven by heavy losses in mining, real estate, and industrial stocks. With a nearly 1.6% decline last week, the TSX benchmark posted its worst weekly performance since September.
Top TSX Composite movers and active stocks
Shares of Enghouse Systems (TSX:ENGH) plunged by nearly 13% to $27.36 per share, making it the day’s worst-performing TSX stock. This selloff in ENGH stock came a day after the Markham-headquartered software company announced its disappointing quarterly financial results.
In the quarter ended in October 2024, Enghouse’s revenue rose 2.1% year over year to $125.7 million with the help of a modest increase in recurring revenue. However, higher costs and lower margins drove its adjusted quarterly net profit down by 9.9% from a year ago to $22.6 million, which also failed to meet Street analysts’ expectations. ENGH stock is now down 22% on a year-to-date basis and offers a 3.8% annualized dividend yield.
OceanaGold, Hudbay Minerals, and SilverCrest Metals were also among the session’s bottom performers on the Toronto Stock Exchange, with each falling by at least 2.6%.
In contrast, Celestica and Capital Power were the top-performing TSX stocks as they climbed by 9.1% and 3.6%, respectively.
Based on their daily trade volume, Canadian Natural Resources, Pembina Pipeline, Telus, BCE, and TC Energy were the five most active stocks on the exchange.
TSX today
Crude oil, natural gas, and base metals prices were largely bearish early Monday morning, which could pressure the commodity-heavy main TSX index at the open today.
Before monitoring Bank of Canada governor Tiff Macklem’s remarks about the economy in the afternoon, the U.S. manufacturing and services data will remain on Canadian investors’ radar this morning.
Overall, markets may remain cautious as investors await many key economic releases, including Canada’s consumer inflation report and the Fed’s interest rate decision, due later this week.
Market movers on the TSX today
