TSX Today: What to Watch for in Stocks on Wednesday, March 25

The TSX edged higher for a second day on easing geopolitical worries, while today’s focus shifts to metals strength and ongoing oil volatility.

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Key Points
  • Canadian stocks traded positively for a second day, with the TSX Composite rising 0.2%, driven by gains in utilities, energy, and mining sectors amid geopolitical tension de-escalation.
  • Top performers included Methanex, Boralex, 5N Plus, and TransAlta, while MDA Space and Dollarama stocks declined significantly due to updates on NASA's Artemis mission and earnings reports.
  • Today, rising precious metals prices might boost mining stocks, but crude oil remains volatile with geopolitical updates.

An intraday bounce-back in metals prices amid hopes of de-escalation of the ongoing U.S.-Israel-Iran conflict helped Canadian stocks trade positively for a second consecutive day after reports claimed that diplomatic backchannel efforts were underway to contain further escalation. A day after posting its best single-day performance in over a month, the S&P/TSX Composite Index inched up by 58 points, or 0.2%, on Tuesday to settle at 31,942 — trimming the market benchmark’s month-to-date decline to 7%.

Despite continued weakness in consumer cyclical and technology stocks, strong gains in some market sectors like utilities, energy, and mining pushed the TSX index higher.

tsx today

Top TSX Composite movers and active stocks

Methanex, Boralex, 5N Plus, and TransAlta were the top-performing TSX stocks for the day, with each climbing by at least 6.5%.

However, MDA Space (TSX: MDA) tanked by 10% to $40.30 per share, making it the day’s worst-performing TSX stock. This selloff in MDA stock came after the Toronto-based space tech firm issued an update tied to NASA’s planned changes to its Artemis mission. NASA indicated it may pause the Gateway program and shift focus toward lunar surface infrastructure, creating uncertainty around the program’s direction.

While MDA clarified that its Canadarm3 contract remains unchanged and continues under the Canadian Space Agency, the update still pointed to evolving priorities within Artemis. Investors’ negative reaction to this news reflected growing concerns about how these changes could impact MDA’s long-term growth tied to the Artemis mission.

Similarly, shares of Dollarama (TSX: DOL) plunged 9.6% after the discount retailer reported its fourth-quarter and full-year results. While the company’s quarterly sales rose 11.7% year over year to $2.1 billion, earnings growth remained modest, with net profit up just 0.4% in the quarter.

The company also saw margin pressure, with its EBITDA (earnings before interest, taxes, depreciation, and amortization) margin falling to 33.9% from 35.6% and gross margin declining due to weaker performance in its Australian segment. The sharp drop in DOL stock reflected concerns around profitability pressures and weaker near-term growth momentum.

Bitfarms and Kinaxis were also among the session’s bottom performers on the Toronto Stock Exchange, with each falling at least 4.4%.

Based on their daily trade volume, New Gold, Canadian Natural Resources, TC Energy, Cenovus Energy, and Whitecap Resources were the five most active stocks on the exchange.

TSX today

Precious metals prices extended their upward momentum in early morning trading on Wednesday, which could lift TSX mining stocks at the open today. However, crude oil prices continued to be volatile as investors kept an eye on geopolitical updates.

While no major economic releases are due this morning, the TSX-listed companies goeasy and G Mining Ventures will release their latest quarterly earnings reports today after the market closing bell. Investors will closely assess these results for insights into consumer lending trends and mining sector performance.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Dollarama, Kinaxis, and MDA Space. The Motley Fool recommends Canadian Natural Resources, Dollarama, Kinaxis, MDA Space, Methanex, and Whitecap Resources. The Motley Fool has a disclosure policy.

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