Canadian equities fell for a second consecutive session on Thursday as mixed corporate earnings, global trade uncertainties, and slightly hotter-than-expected U.S. personal consumption expenditure data raised fresh concerns about persistent inflation and the potential for extended higher interest rates. The S&P/TSX Composite Index slipped by 110 points, or 0.4%, to settle at 27,260 — marking its lowest close in two weeks.
Even as an intraday rebound in gold prices helped some mining stocks trade positively, heavy losses in many other key sectors, including healthcare, technology, and energy, dragged the TSX benchmark lower.
Top TSX Composite movers and active stocks
Bausch Health (TSX:BHC) dived by nearly 8% to $8.17 per share, making it the worst-performing TSX stock for the day. This selloff in BHC stock came despite the Canadian healthcare giant reporting 5% YoY (year-over-year) rise in its second-quarter revenue and a 6% increase in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
Although Bausch Health’s net quarterly profit also surged to $148 million last quarter from just $10 million a year ago, its cash flow from operations dropped 24% to $289 million. Investors also seemed concerned about rising costs and a 32% revenue decline in the diversified segment. On a year-to-date basis, BHC stock is now down nearly 30%.
Tourmaline Oil, Lightspeed Commerce, and Alamos Gold were also among the bottom performers on the Toronto Stock Exchange, with each diving by at least 4.2%.
On the flip side, GFL Environmental (TSX:GFL) climbed by nearly 6% to $69.78 per share after the company posted upbeat second-quarter results and raised its full-year guidance. Its revenue rose 9.5% YoY with the help of 5.8% core pricing growth and 2.5% higher volumes. Similarly, GFL’s adjusted EBITDA surged 14.6% last quarter, backed by margin expansion and a reduction in cash interest paid. After the recent rally, GFL stock has risen over 30% in the last year.
Ero Copper, Kinross Gold, and Capstone Copper also climbed by 3.2% each, making them among the day’s top-performing TSX stocks.
Based on their daily trade volume, Cenovus Energy, Canadian Natural Resources, Baytex Energy, TD Bank, and Manulife Financial were the five most active stocks on the exchange.
TSX today
Metals prices were largely negative in early trading on Friday, which could pressure TSX mining stocks at the open today.
While no major domestic economic releases are due, Canadian investors will closely monitor the U.S. monthly manufacturing and jobs data this morning. These reports could provide fresh insight into the strength of the U.S. economy and influence expectations around future interest rate moves.
On the corporate events side, many TSX-listed companies, including TransAlta, Imperial Oil, AltaGas, Magna International, Brookfield Renewable Partners, Fortis, Brookfield Business Partners, Enbridge, and Telus, will announce their latest quarterly results today.
Market movers on the TSX today
