Despite firm commodity prices, Canadian equities turned negative on Tuesday as investors feared that a prolonged U.S. government shutdown could dampen global economic momentum and risk appetite. After posting seven consecutive days of gains to reach an all-time high, the S&P/TSX Composite Index dived by 180 points, or 0.6%, yesterday to settle at 30,352 — registering its worst single-day percentage decline in over two months.
On the one hand, defensive market sectors like utilities and consumer staples helped cushion the broader decline, with modest gains reflecting investors’ shift toward safer assets. On the other hand, consumer discretionary and technology stocks came under pressure amid renewed concerns about weakening consumer demand and uncertainty around interest rate direction.
Top TSX Composite movers and active stocks
Allied Properties Real Estate Investment Trust (TSX: AP.UN) plunged over 7% to $20.69 per unit, making it one of the worst-performing TSX stocks for the day. This sharp decline came after the Toronto-based REIT issued a leasing update revealing it won’t meet its year-end target of 90% occupancy and leased area.
While Allied highlighted positive leasing momentum in Montréal and Vancouver, progress in Toronto and its heritage properties has been slower than expected. Its management noted that leasing velocity is beginning to pick up but acknowledged that the pace has lagged throughout the year, triggering a selloff in the stock. On a year-to-date basis, Allied stock is still up over 20%.
SECURE Waste Infrastructure, Magna International, and Bombardier were also among the bottom performers on the Toronto Stock Exchange, with each falling by more than 5%.
On the flip side, NovaGold Resources, Badger Infrastructure Solutions, Energy Fuels, and Equinox Gold jumped by at least 3.4% each, making them the session’s top-performing TSX stocks.
According to the exchange’s daily trade volume data, Canadian Natural Resources, TD Bank, Cenovus Energy, Baytex Energy, and Bank of Nova Scotia were the five most active stocks.
TSX today
Commodity prices across the board inched up in the early morning trading on Wednesday, with spot gold prices trading close to US$4,050 per ounce as U.S. government shutdown concerns continued to drive demand for safe-haven assets. Given these developments, the TSX could see a slightly higher opening today as investors weigh strength in commodity markets against macroeconomic uncertainty.
While no major domestic economic releases are due, Canadian investors will closely monitor the latest FOMC (Federal Open Market Committee) meeting minutes for signals on the interest rate path. In addition, any developments related to efforts to end the ongoing U.S. government shutdown could influence investor sentiment on both sides of the border.
Market movers on the TSX today
