Surging metals prices and renewed hopes of Fed rate cuts drove Canadian stocks higher on Friday as investors extended the market’s record-setting run. The S&P/TSX Composite Index jumped by 278 points, or 1%, to settle at 28,333 — marking its second consecutive record close and ending the third straight week of gains for the benchmark index.
Despite weakness in consumer discretionary and utility stocks, strong buying in other key sectors, such as technology, mining, and energy, helped drive the TSX higher.
Top TSX Composite movers and active stocks
Shares of Cenovus Energy (TSX: CVE) soared by over 7% to $22.68 apiece, making it the top-performing TSX stock for the day. This rally in CVE stock followed the company’s $7.9 billion agreement to acquire MEG Energy (TSX: MEG) in a cash-and-stock deal.
The transaction, priced at $27.25 per MEG share, will add roughly 110,000 barrels per day of production and consolidate Cenovus’s position as the leading SAGD (steam-assisted gravity drainage) oil sands producer. The company’s management expects this acquisition to result in over $400 million in annual synergies by 2028, with the deal to be immediately accretive to its adjusted funds flow and free funds flow per share. On a year-to-date basis, CVE stock is now up 4.1%.
Energy Fuels, NexGen Energy, and Denison Mines were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 6.3%.
In contrast, George Weston, Loblaw Companies, Empire Company, and Metro slipped by at least 2.3% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Cenovus Energy, Manulife Financial, Enbridge, and Suncor Energy were the five most active stocks on the exchange.
TSX today
Commodity prices across the board were mixed in early Monday trading, with silver and copper extending recent gains while crude oil edged slightly lower. This setup could lead to a muted open for the resource-heavy TSX after last week’s strong rally.
While no major domestic economic releases are scheduled, Canadian investors may want to keep an eye on the latest U.S. new home sales data this morning.
Overall, market sentiment may remain volatile as investors look forward to Canadian bank earnings later this week.
Market movers on the TSX today
