Canadian equities continued to trade positively for the third consecutive session on Wednesday as investors reacted to upbeat corporate earnings and easing inflationary pressures in the United States. The S&P/TSX Composite Index climbed by 72 points, or 0.3% to settle at 27,993 — posting its second straight record close.
Even as some sectors, such as consumer staples and utilities, saw mild pullbacks, robust gains in consumer discretionary, real estate, and financial stocks easily outweighed the weakness.
Top TSX Composite movers and active stocks
Hudbay Minerals (TSX:HBM) was the top-performing TSX stock for the day as it climbed by around 15% to $15.58 per share. This rally in HBM stock came after the Toronto-based copper miner announced a major US$600 million strategic investment from Mitsubishi Corporation for a 30% stake in its Copper World project.
This announcement boosted the financial flexibility of Hudbay’s project, lifting its forecasted levered internal rate of return to about 90%, and shifting the company’s first capital contribution out until at least 2028. At the same time, the company delivered strong second-quarter results with robust free cash flow, improved cost guidance, and reinforced its production outlook. On a year-to-date basis, HBM stock is now up 34%.
Shares of Gildan Activewear (TSX:GIL) also jumped nearly 12% to $75.62 per share after the Montréal-based apparel maker announced it will acquire HanesBrands in a deal valuing the U.S. company at about US$2.2 billion in equity. The merger is expected to double Gildan’s revenues, broaden its retail reach, and add iconic brands to its portfolio, while leveraging its low-cost vertically integrated manufacturing model.
Boyd Group Services and West Fraser Timber also jumped by over 5% each, making them among the day’s top gainers on the Toronto Stock Exchange.
In contrast, TerraVest Industries, Metro, NGEx Minerals, and Denison Mines were the worst performing TSX stocks for the session, as they dived by at least 6.4% each.
Based on their daily trade volume, Hudbay Minerals, Enbridge, Canadian Natural Resources, Denison Mines, and Chartwell Retirement Residences were the five most active stocks on the exchange.
TSX today
Metals prices across the board fell in early Thursday trading, with silver and copper easing from their recent highs. The pullback in commodities could weigh on the resource-heavy TSX at the open today, especially after strong gains in mining stocks earlier this week.
While no major domestic economic releases are due, Canadian investors will closely monitor the U.S. monthly wholesale inflation and weekly jobless claim figures this morning.
On the corporate events side, the TSX-listed G Mining Ventures, Aya Gold & Silver, and First Majestic Silver will announce their latest quarterly results today, which could add to volatility in mining shares.
Market movers on the TSX today
