TSX Today: What to Watch for in Stocks on Monday, December 8

After Friday’s pullback, the TSX benchmark could face a cautious start to the week today amid central bank uncertainty and commodity headwinds.

Key Points
  • The rally in Canadian stocks paused on Friday, with the TSX Composite dipping 0.5% amid strong jobs data and tempered rate cut expectations.
  • Key movers included Orla Mining, plunging 11% on a major share sale by Fairfax, while top performers like Aecon Group rose over 2%.
  • TSX investors will watch for volatility on Monday from falling oil prices and upcoming central bank decisions.

After rallying for two consecutive sessions, Canadian stocks took a breather on Friday as a significantly stronger-than-expected domestic jobs report and mixed U.S. inflation data led investors to dial back expectations for near-term interest rate cuts. The S&P/TSX Composite Index slipped by 166 points, or 0.5%, to settle at 31,311 — ending the week with a small decline of 71 points.

Despite gains in consumer discretionary and financial stocks, weakness in some other key sectors like healthcare and industrials offset broader market momentum.

tsx today

Top TSX Composite movers and active stocks

Orla Mining (TSX: OLA) dived by 11% to $17.10 per share, making it the worst-performing TSX stock for the day. This selloff in OLA stock came after Fairfax Financial (TSX: FFH) sold 25 million shares of the Vancouver-based miner — worth about $441 million — as part of a portfolio rebalancing.

While Fairfax still holds a sizable stake in the company, the large block sale spooked investors and raised short-term supply concerns. Notably, the decline also comes just two days after Orla announced its inaugural dividend, which suggests that broader sentiment was overshadowed by the major shareholder’s exit. Despite recent weakness, however, OLA stock is still up 115% on a year-to-date basis.

Shares of Bausch Health, NexGen Energy, and Energy Fuels were also among the day’s bottom performers on the Toronto Stock Exchange, with each slipping by at least 5.2%.

On the flip side, Aecon Group, G Mining Ventures, ATS, and DPM Metals climbed by at least 2.3%, making them the session’s top-performing TSX stocks.

Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Cenovus Energy, Whitecap Resources, and Barrick Mining were the five most active stocks on the exchange.

TSX today

Crude oil prices fell sharply in early trading on Monday, while most other commodities showed mixed performance. This sets a cautious tone for the TSX at the open today.

Although no major domestic economic releases are due, stocks may still see volatility as investors on both sides of the border await central bank decisions later this week. While the Bank of Canada is largely expected to maintain current rates, economists expect the U.S. Federal Reserve to cut its benchmark rate by 25 basis points on Wednesday.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources. The Motley Fool has positions in and recommends Fairfax Financial. The Motley Fool recommends ATS Corp., Canadian Natural Resources, and Whitecap Resources. The Motley Fool has a disclosure policy.

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