The bullish momentum in the Canadian stock market extended further on Wednesday as significantly weaker-than-expected U.S. wholesale inflation lifted hopes for more aggressive interest rate cuts. The S&P/TSX Composite Index rose by 116 points, or 0.4%, to close at 29,179, marking yet another all-time high.
Despite declines in some sectors like healthcare and technology, solid intraday gains in mining, energy, and financial stocks powered the TSX to another record close, highlighting the strength of the ongoing rally.
Top TSX Composite movers and active stocks
IAMGOLD, Equinox Gold, Baytex Energy, and Dundee Precious Metals were the top-performing TSX stocks for the day, with each jumping by at least 5.8%.
Shares of Cenovus Energy (TSX: CVE) also surged by nearly 5% to $23.68 apiece after CEO Jon McKenzie said the company will not raise its takeover bid for MEG Energy (TSX: MEG) despite a competing, higher all-stock offer from Strathcona Resources, Bloomberg reported. Cenovus is sticking with its cash-and-stock deal worth about $7.9 billion, which was originally announced on August 22.
Last month, Cenovus highlighted more than $400 million in annual synergies expected from combining the oil sands producers. Notably, Strathcona, which owns 14% of MEG, plans to oppose the deal. This means Cenovus must now secure strong shareholder support at an October vote. Following this news, investors sent CVE stock higher on confidence that its management is holding firm on valuation discipline while keeping the MEG acquisition on track.
In contrast, Lightspeed Commerce, MDA Space, Energy Fuels, and Constellation Software slid by at least 3.5% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Cenovus Energy, Suncor Energy, Baytex Energy, and Whitecap Resources were the five most active stocks on the exchange.
TSX today
After several days of strength, commodity prices across the board showed signs of cooling in early Thursday trading, which could pressure the resource-heavy TSX index at the open today.
While no major domestic economic releases are due, the U.S. consumer inflation report scheduled for release this morning will be closely watched by Canadian investors for clues on the Federal Reserve’s policy trajectory. If it echoes Wednesday’s softer wholesale inflation data, markets may strengthen their bets on near-term rate cuts and support rate-sensitive sectors such as real estate and technology.
On the corporate events side, the TSX-listed Empire Company will announce its latest quarterly results today. Bay Street analysts expect the Canadian food retailer to post earnings of $0.88 per share for the July quarter with $8.28 billion in revenue.
Market movers on the TSX today
