Following a day of relief, selling pressure returned to the Canadian stock market on Monday as investors reacted to ongoing economic uncertainties, trade conflicts, and geopolitical risks. After diving by 2.5% last week, the S&P/TSX Composite Index gave up another 378 points, or 1.5%, to 24,381 — its lowest closing level in over four months.
On the one hand, utility stocks provided some stability as investors sought defensive positions amid market uncertainty. On the other hand, most other sectors ended the session in red, with technology, mining, real estate, and industrial stocks posting heavy losses.
Top TSX Composite movers and active stocks
Veren (TSX:VRN) jumped by 16% to $8.19 per share after announcing after announcing its $15 billion all-stock merger with Whitecap Resources (TSX:WCP). The deal, expected to close before May 30, will create the largest Alberta Montney and Duvernay landholder with a combined production of 370,000 barrels of oil equivalent per day.
VRN investors reacted positively to the Veren-Whitecap strategic merger news, which is projected to generate over $200 million in annual synergies. In contrast, Whitecap stock tanked by 14.5% to $7.99 per share as investors appeared to weigh potential share dilution and integration risks. On a year-to-date basis, VRN stock is now up 11% while WCP stock is down 22%.
South Bow, Keyera, and MDA Space were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 3.5%.
In addition to Whitecap Resources, shares of Algoma Steel, Methanex, and Capstone Copper tanked by at least 11% each, positioning them among the session’s worst-performing TSX stocks.
Based on their daily trade volume, Veren, Whitecap Resources, Suncor Energy, Manulife Financial, and Canadian Natural Resources were the five most active stocks on the exchange.
TSX today
Spot gold and West Texas Intermediate crude oil futures prices showed minor recovery in early trading on Tuesday, which could provide some support for TSX mining and energy stocks at the open today.
While no major domestic economic releases are due, Canadian investors will closely monitor the monthly job openings data from the United States this morning, which could influence market sentiment.
On the corporate events side, TSX-listed companies Peyto Exploration & Development, Labrador Iron Ore Royalty, and Transcontinental will announce their latest quarterly results today after the market closing bell, keeping their stocks in focus.
Market movers on the TSX today
