TSX Today: What to Watch for in Stocks on Friday, October 31

The TSX could trade flat at the open today as investors await fresh GDP data and major earnings, with the index marginally up 0.5% for the month.

Key Points
  • Canadian stocks remained cautious on Thursday with mixed earnings and rate cut uncertainties, though healthcare and mining gains kept the TSX marginally positive.
  • Allied Properties led losses due to poor earnings and a weaker outlook, while Bausch Health surged 12.5% on strong results and an optimistic full-year forecast.
  • Today, investors eye GDP and budget data, as well as quarterly results from Imperial Oil and others, which may drive market direction.

The Canadian stock market remained largely muted on Thursday as mixed corporate earnings and uncertainty about future rate cuts kept investors on edge despite a sharp intraday recovery in precious metals prices. The S&P/TSX Composite Index climbed 34 points, or 0.1%, to settle at 30,179 as rollercoaster trading in key sectors reflected the market’s cautious mood.

Even as real estate and technology stocks continued to post sharp declines for a second consecutive session, healthy gains in healthcare and mining offset broader weakness, keeping the market benchmark marginally in positive territory.

Before the last trading day of October, the TSX Composite now trades with a small 0.5% month-to-date gain.

tsx today

Top TSX Composite movers and active stocks

Shares of Allied Properties Real Estate Investment Trust (TSX: AP.UN) plunged more than 17% to $15.26 on Thursday, making it the worst-performing stock on the Toronto Stock Exchange. The sharp drop followed the company’s third-quarter results, which showed a net loss of $113.4 million — much worse than expected.

Allied’s management blamed delays in leasing office space, lower building occupancy, and higher interest costs as the main reasons for weak performance. While the company has been selling properties to reduce its debt, it now expects its full-year earnings available for distribution to fall by about 10%. The bleak outlook and weaker performance were the main drivers behind the stock’s steep decline, which now trades with 11% year-to-date losses.

MDA Space and Cogeco Communications were also among the biggest TSX losers of the day, as both slipped by at least 7.4%.

On the brighter side, Bausch Health (TSX: BHC) rallied 12.5% to $9.25 per share, making it the day’s top-performing TSX stock. The rally in BHC stock came after the company posted strong third-quarter results, with its total revenue rising 7% to $2.68 billion, led by solid growth in its Salix and Solta Medical segments.

Even after an $81 million research and development charge, Bausch Health’s net profit reached $179 million last quarter. The company also raised its full-year forecast, boosting investors’ confidence.

Discovery Silver, Aris Mining, and Perpetua Resources were also among the session’s top-performing TSX stocks, with each climbing by at least 7.4%.

Based on their daily trade volume, Canadian Natural Resources, Cenovus Energy, Manulife Financial, Scotiabank, and Suncor Energy were the five most active stocks on the exchange.

TSX today

Commodity prices across the board were moving sideways in early Friday trading, suggesting a flat to cautious open for the resource-heavy TSX index today.

Canadian investors will keep an eye on the latest monthly budget balance and gross domestic product figures set to be released this morning, which could provide fresh insight into the health of the domestic economy.

On the corporate events front, many TSX-listed companies, including Imperial Oil, Cenovus Energy, Magna International, and Canadian National Railway, will announce their latest quarterly financial results today, which could keep their stocks in the spotlight as markets look for positive catalysts to end the month in the green.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Magna International, and Mda Space. The Motley Fool recommends Bank Of Nova Scotia, Canadian National Railway, Canadian Natural Resources, Cogeco Communications, and Magna International. The Motley Fool has a disclosure policy.

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