Canadian equities continued to rise for a second consecutive session on Thursday as surging crude oil and base metals prices boosted investor sentiment across resource-heavy sectors, while weaker-than-expected retail sales numbers raised hopes of more rate cuts from the Bank of Canada in the near term. The S&P/TSX Composite Index advanced 203 points, or 0.7%, to close at 30,186, erasing all of its losses from earlier in the week.
While consumer staples and utility stocks retreated, the dip was more than offset by strong rallies in energy, consumer discretionary, and technology sectors.
Top TSX Composite movers and active stocks
Curaleaf Holdings, Baytex Energy, International Petroleum, and Celestica were the top-performing TSX stocks for the day, with each rising by at least 4.5%.
Despite the broader market rally, shares of FirstService (TSX:FSV) dived by nearly 10% to $233 apiece, making it the day’s worst-performing TSX stock. This selloff in FSV stock came after the Toronto-headquartered real estate services firm reported a year-over-year decline in third-quarter operating earnings and warned about macroeconomic headwinds.
While FirstService posted a 4% increase in its quarterly revenue to US$1.45 billion and an 8% rise in adjusted earnings per share, its GAAP (generally accepted accounting principles) earnings fell to US$1.24 from US$1.34 a year earlier. The company’s Brands segment underperformed, with a 4% drop in organic revenue due to weakness in restoration and roofing services, which also led to margin pressure. In addition, FirstService also flagged continued macroeconomic headwinds heading into the fourth quarter, weighing on investor sentiment.
Energy Fuels, TFI International, and OR Royalties were also among the session’s bottom performers on the Toronto Stock Exchange, with each diving by at least 2.9%.
Based on their daily trade volume, Cenovus Energy, Whitecap Resources, Canadian Natural Resources, Enbridge, and Royal Bank of Canada were the five most active stocks on the exchange.
TSX today
After rallying sharply in the last three days, crude oil prices were largely mixed in early morning trade on Friday. At the same time, gold and silver prices fell sharply as traders seemingly took profits following recent gains and weighed the latest geopolitical developments. The mixed performance in commodities may lead to a softer open for the TSX today, especially in resource-linked sectors.
In another major development, U.S. president Donald Trump accused Canada of using a “fake” advertisement involving former president Ronald Reagan to influence U.S. court decisions. Trump claimed the ad was part of a $75 million campaign and responded by announcing the termination of all trade negotiations with Canada. This unexpected move could inject fresh uncertainty into cross-border trade discussions, which could lead to increased volatility in TSX stocks at the open today.
Meanwhile, Canadian investors also may want to keep an eye on the latest U.S. consumer inflation report this morning, which could influence broader market sentiment and interest rate expectations.
Market movers on the TSX today
