Even as speculations about potential interest rate cuts continue to swirl, Canadian stocks edged higher on Tuesday as rallying commodity prices and easing Treasury bond yields helped offset investor caution ahead of key U.S. wholesale inflation data due Wednesday. The S&P/TSX Composite Index rose by 35 points to 29,063 — settling at a fresh all-time high and posting its ninth advance out of the last 10 sessions.
On the one hand, worries about delayed monetary easing led to a downside correction in real estate and technology stocks. On the other hand, robust gains in commodities powered mining and energy shares higher, allowing the TSX index to notch another record close.
Top TSX Composite movers and active stocks
Shares of Teck Resources (TSX: TECK.B) jumped 11.5% to $54.09 apiece, making it the top-performing TSX stock for the day. The rally followed Teck’s announcement of a merger with Anglo American to create “Anglo Teck,” a Canada-headquartered critical-minerals giant with over 70% copper exposure.
Investors cheered the Teck-Anglo deal’s targeted US$800 million in annual pre-tax recurring synergies. The deal, which is expected to close in 12 to 18 months pending approvals, could also unlock more value by better coordinating two large Chilean mines that sit next to each other. Notably, the new company is expected to list its shares in major markets, including Toronto and New York, with headquarters in Vancouver. Despite the recent rally, however, Teck stock is still down 7% on a year-to-date basis.
Energy Fuels (TSX: EFR) also climbed by more than 10% after the company revealed its high-purity neodymium-praseodymium (NdPr) oxide has been qualified for use in permanent magnets for electric and hybrid vehicle motors. The recent rally in EFR stock extended its year-to-date gains to 146%.
Headwater Exploration and Tamarack Valley Energy were also among the top gainers on the Toronto Stock Exchange, with each climbing by at least 3.4%.
In contrast, Orla Mining, North West Company, Brookfield Business Partners, and BRP slipped by more than 4% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Tourmaline Oil, Cenovus Energy, and Teck Resources were the five most active stocks on the exchange.
TSX today
Oil and gold prices continued to trade positively for the third straight day in early Wednesday trading, which could lift the commodity-heavy main TSX index at the open today.
While no major domestic economic releases are due, Canadian investors will closely monitor U.S. wholesale inflation figures this morning, which could significantly influence rate expectations and market direction.
Market movers on the TSX today
