The pullback in Canadian equities resumed on Monday as worries about the overvaluation of high-flying tech stocks and uncertainty about near-term policy direction sparked some profit-taking. The S&P/TSX Composite Index gave up 250 points, or 0.8%, to close at 30,076, as investors moved to lock in recent gains ahead of key economic data due later this week.
While consumer staples and utility stocks saw renewed buying as investors rotated into more defensive sectors, this was not enough to offset broader losses across technology, real estate, and mining, which weighed heavily on the overall market.
Top TSX Composite movers and active stocks
Stantec, Aya Gold & Silver, Lightspeed Commerce, and Colliers International were the worst-performing TSX stocks for the day, with each diving by at least 4.8%.
Shares of MDA Space (TSX:MDA) also plunged by 3.7% to $21.44 per share after analysts at BMO and RBC slashed their targets on the stock. These revisions came even as the Canadian space technology firm reported a 45% jump in its third-quarter revenue and a 49% increase in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
Although higher work volumes across its satellite and robotics businesses drove MDA’s adjusted profit up by 33% in the latest quarter, its operating cash flow fell sharply due to working‑capital movements, and backlog edged slightly lower as major projects converted to revenue. Strong growth but softer cash generation and a backlog decline appear to have driven the cautious analyst reaction and the stock’s pullback. On a year-to-date basis, MDA stock is now down 27%.
Despite the broader market weakness, however, Superior Plus, Perpetua Resources, DPM Metals, and Fairfax Financial climbed by at least 2.8% each, making them the day’s top-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Enbridge, Cenovus Energy, Telus, and Suncor Energy were the five most active stocks on the Toronto Stock Exchange.
TSX today
Commodity prices were largely mixed in early trading on Tuesday, pointing to a flat or slightly cautious open for the TSX today.
While no major economic releases are due this morning, market participants will remain focused on global macro developments and commodity price trends for direction, ahead of the Fed’s latest meeting minutes, the U.S. Federal Reserve’s latest meeting minutes scheduled for release tomorrow.
Market movers on the TSX today
