Canadian stocks continued to rebound for a second consecutive session on Monday as recent signs of easing inflationary pressures in the U.S. boosted hopes that the Federal Reserve may slash interest rates further in the near term. These expectations, coupled with surging commodity prices, drove the S&P/TSX Composite Index up by 232 points, or 0.9%, to 24,785 — extending its two-day gains to 2.4%.
While nearly all key sectors, except healthcare, ended the session in green, solid gains in commodity-linked, financial, and real estate stocks provided strong support for the TSX, helping it extend its rebound.
Top TSX Composite movers and active stocks
Shares of TerraVest Industries (TSX:TVK) led the TSX rally as they jumped by over 20% to $131.04 apiece. TVK stock began its rally after announcing the acquisition of a North American tank trailer manufacturing firm EnTrans International for US$546 million, with an extra US$46 million tied to performance.
The deal, which is TerraVest’s largest to date, represents about a seven times multiple of EnTrans’s trailing 12-month EBITDA (earnings before interest, taxes, depreciation, and amortization) and is expected to be immediately accretive to its earnings per share. To fund this acquisition, TerraVest also amended its credit facility to $800 million. TVK stock is now up 17.2% year to date.
B2Gold, K92 Mining, First Majestic Silver, and StorageVault Canada were also among the top performers on the Toronto Stock Exchange, with each surging by at least 5.6%.
On the flip side, Algoma Steel, NFI Group, Lundin Gold, and Bausch Health slipped by at least 2.1% each, making them the worst-performing TSX stocks for the day.
According to the exchange’s daily trade volume data, Canadian Natural Resources, Suncor Energy, Manulife Financial, Whitecap Resources, and Pembina Pipeline were the five most active stocks.
TSX today
Commodity prices were largely bullish in early trading on Tuesday, pointing to a slightly higher opening for the resource-heavy main TSX index today.
Canadian investors may want to keep a close eye on the important domestic consumer inflation report this morning as it could set the tone for the Bank of Canada’s future interest rate decisions. Overall, stocks may remain volatile as investors keenly await the U.S. Fed’s interest rate decision due tomorrow, which will play a key role in shaping global market sentiment.
On the corporate events front, the TSX-listed Alimentation Couche-Tard and Orla Mining will announce their latest quarterly financial results today after the market closing bell.
Market movers on the TSX today
