TSX Today: What to Watch for in Stocks on Tuesday, May 20

After rallying for six straight weeks, the TSX Composite Index is currently trading at its historic highs.

Canadian stocks rose for the ninth consecutive session on Friday before going into the long Victoria Day weekend as recent signs of cooling inflationary pressures and easing trade tensions continued to support investor sentiment. The S&P/TSX Composite Index gained 74 points, or 0.3%, to close at 25,972 — marking a fresh record high.

Despite minor weakness in commodity-linked stocks, strong gains in other sectors like healthcare, consumer, and real estate helped lift the broader index. Notably, with 2.4% weekly advances, the TSX benchmark posted its sixth straight winning week.

tsx today

Top TSX Composite movers and active stocks

MEG Energy (TSX: MEG) soared by nearly 19% to $25.29 per share, making it the top-performing TSX stock for the day. This rally in MEG stock came after the Calgary-based oil sands producer confirmed that Strathcona Resources intends to launch an unsolicited offer to acquire all outstanding MEG shares not already owned by Strathcona or its affiliates.

While no formal bid has yet been made, the news sparked speculation of a takeover at a potential premium, driving strong investor interest. MEG’s board stated it would review any formal offer when received and advised shareholders to take no action until an official recommendation is provided. On a year-to-date basis, MEG stock is up 7.2%.

Tilray, Athabasca Oil, and AtkinsRéalis Group were also among the top gainers on the Toronto Stock Exchange, with each climbing by at least 4.6%.

In contrast, South Bow, Ero Copper, Capstone Copper, and Denison Mines slipped by at least 3.3%, making them the day’s worst-performing TSX stocks.

Based on their daily trade volume, Enbridge, Manulife Financial, Canadian Natural Resources, Whitecap Resources, and MEG Energy were the five most active stocks on the exchange.

TSX today

Commodity prices across the board were mixed in early trading on Tuesday, pointing to a potentially subdued open for the resource-heavy TSX index today.

With no major U.S. economic releases scheduled, Canadian investors will closely monitor the domestic consumer inflation report this morning, which could provide fresh clues about the Bank of Canada’s interest rate trajectory.

On the corporate events front, the TSX-listed NexGen Energy will host its first-quarter conference call today. The call will focus on updates from its senior leadership on the development of the company’s flagship Rook I uranium project.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources and Enbridge. The Motley Fool recommends Canadian Natural Resources, Enbridge, Tilray Brands, and Whitecap Resources. The Motley Fool has a disclosure policy.

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