The Canadian stock market, after rising for two consecutive sessions, turned slightly negative on Tuesday as hotter-than-expected February consumer inflation data made investors reassess their expectations for further interest rate cuts from the Bank of Canada. As a result, the S&P/TSX Composite Index slipped by 79 points, or 0.3%, to settle at 24,706.
While worries about persistent inflation pressured sectors like technology, real estate, and industrials, a continued rise in metal prices provided support to mining stocks, helping to limit the broader market’s decline.
According to Statistics Canada’s latest release, consumer prices rose 2.6% year over year in February, driven by the end of the GST/HST tax break and higher travel tour prices. Nevertheless, gasoline prices helped moderate the increase, rising at a slower 5.1% pace compared to January’s 8.6%.
Top TSX Composite movers and active stocks
Shares of RioCan REIT (TSX:REI.UN) slipped 3.6% to $17.88 per share after the Toronto-based real estate investment trust disclosed its $249 million exposure to Hudson’s Bay Company through their joint venture. This exposure contributed $23.7 million to its net operating income and $13.6 million in funds from operations in 2024.
RioCan also revealed that it has $88.7 million in credit support tied to Hudson’s Bay Company, backed by security in key properties. Notably, this disclosure came a few days after the Hudson’s Bay Company announced it would begin liquidating all stores unless a last-minute restructuring deal is reached. On a year-to-date basis, RioCan stock is now down 2.2%.
Celestica, Definity Financial, and Trisura Group were also among the session’s bottom performers on the Toronto Stock Exchange, with each diving by over 3%.
On the flip side, Aya Gold & Silver, TerraVest Industries, Tilray, and Ero Copper climbed by at least 4% each, making them the top-performing TSX stocks for the day.
Based on their daily trade volume, Canadian Natural Resources, Manulife Financial, Pembina Pipeline, Enbridge, and TC Energy were the five most active stocks on the exchange.
TSX today
Most commodity prices, including crude oil, gold, and silver, trended downward in early trading on Wednesday, which could put pressure on TSX resource stocks at the open today.
While no major domestic economic releases are due this morning, Canadian investors will closely monitor the U.S. Fed’s interest rate decision, press conference, and economic projections in the afternoon, as these events could set the tone for near-term market direction.
On the corporate events front, many TSX-listed companies, including Power Corporation of Canada, Wesdome Gold Mines, and Boyd Group Services, are set to release their latest quarterly earnings reports today.
Market movers on the TSX today
