Canadian stocks continued to climb for a second consecutive session on Tuesday as cooler-than-expected U.S. consumer inflation figures, surging metals prices, and upbeat corporate earnings helped lift investor sentiment. The S&P/TSX Composite Index rose by 146 points, or 0.5%, to close at a fresh all-time high of 27,921.
Despite minor weakness in utility stocks, solid gains in other key sectors such as healthcare, mining, and financials powered the index to yet another record close.
Notably, U.S. consumer inflation cooled in July as the consumer price index (CPI) rose just 0.2% month over month, down from June’s 0.3%, with annual inflation stable at 2.7%. Lower energy costs, including a 2.2% drop in gasoline prices, helped offset shelter gains, signalling easing price pressures. This raised hopes that the Federal Reserve may slash interest rates further in the near term — leading to a sharp market reaction that lifted stocks.
Top TSX Composite movers and active stocks
Shares of Altus Group (TSX:AIF) jumped nearly 10% to $58.16 apiece, making it the top-performing TSX stock for the day. This rally in AIF stock came after a Reuters report said the Toronto-based real estate software and data analytics firm is exploring a potential sale following unsolicited acquisition interest.
According to the report, Altus has hired investment bankers to gauge interest from potential buyers, with private equity firms among the likely suitors. While no deal is guaranteed and the company could remain independent, the news sparked optimism about a potential premium takeover. Over the last year, AIF stock has climbed by 15%.
Exchange Income, IAMGOLD, and CES Energy Solutions were also among the top gainers on the Toronto Stock Exchange, with each climbing by at least 6%.
On the flip side, Orla Mining and Gildan Activewear slid by at least 3.7% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Tourmaline Oil, Canadian Natural Resources, Enbridge, Cenovus Energy, and B2Gold were the five most active stocks on the exchange.
TSX today
West Texas Intermediate crude oil futures prices fell in early Wednesday trading. At the same time, metal prices continued to climb for the second straight session. Given these moves, the TSX could see a mixed open today as strength in mining counters weakness in energy stocks.
While no major economic releases are due this morning, TSX investors will remain focused on more corporate earnings with results expected from Stantec, Bird Construction, Northland Power, Equinox Gold, Hydro One, Metro, Hudbay Minerals, and Boyd Group.
Market movers on the TSX today
