TSX Today: What to Watch for in Stocks on Monday, April 20

The TSX remains near record highs after Friday’s strong gains, but rising tensions in the Middle East and a spike in oil prices could drive volatility today.

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Key Points
  • The TSX Composite Index rose 294 points on Friday as oil prices fell, driven by hopes of easing geopolitical tensions and stabilizing energy markets.
  • Avino Silver & Gold Mines surged nearly 8% following its first consolidated mineral reserve estimate, signaling strong long-term potential.
  • TSX energy stocks could experience volatility at the open today as oil and gas prices spiked after the U.S. seized an Iranian-linked ship, raising geopolitical tensions.

The Canadian stock market trended higher on Friday as crude oil prices slipped to their lowest level in over a month, with growing expectations that easing geopolitical tensions could help stabilize global energy markets. The S&P/TSX Composite Index advanced by 294 points, or 0.9%, for the day to settle at 34,346 — not far away from its all-time high closing level of 34,541.

Even as steep declines in oil prices pressured energy stocks, strong gains in many other key sectors, such as mining, industrials, and technology, helped lift the broader TSX index higher.

However, Canadian investors appeared cautious about the durability of the recent rally, given lingering uncertainty around global energy markets and geopolitical developments.

tsx today

Top TSX Composite movers and active stocks

Avino Silver & Gold Mines (TSX: ASM) jumped by nearly 8% to $10.62 per share, making it the day’s top-performing TSX stock. This rally in Avino stock came a day after the company announced its inaugural consolidated mineral reserve estimate across its key assets.

Notably, Avino posted total proven and probable reserves of 127 million silver equivalent ounces, while also highlighting a 9% increase in measured and indicated mineral resources. It added that 42% of its resources have now been converted into reserves, signalling strong long-term mining potential. ASM stock climbed as investors welcomed this major milestone, which highlights the scale, quality, and long-term growth visibility of Avino’s asset base.

Novagold Resources, Perpetua Resources, and Seabridge Gold were also among the top gainers on the Toronto Stock Exchange, with each jumping by at least 6.9%.

In contrast, Vermilion Energy, Canadian Natural Resources, Methanex, and Athabasca Oil dived by more than 6% each, making them the session’s worst-performing TSX stocks.

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

TSX today

Metal prices were largely mixed in early morning trading on Monday, but oil and gas prices jumped sharply after reports of a sharp escalation in tensions around the Strait of Hormuz, where the U.S. reportedly seized an Iranian-linked cargo ship over the weekend after it attempted to bypass the ongoing naval blockade. The incident marks the first such interception since the blockade began and has raised fresh concerns about potential retaliation, with Iran warning it may respond.

Given these developments, the resource-heavy main TSX index could see heightened volatility at the open today, with energy stocks likely to react strongly to the sudden spike in oil and gas prices.

Adding to market jitters, uncertainty around the next round of U.S.-Iran talks persists, with conflicting signals on whether negotiations will proceed as planned.

While no major U.S. economic releases are due, Canadian investors may want to keep a close eye on the domestic consumer inflation report this morning, which could give further direction to TSX stocks.

On the corporate events side, the TSX-listed PrairieSky Royalty is slated to announce its latest quarterly results today after the market closing bell.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in BlackBerry and Canadian Natural Resources. The Motley Fool recommends Canadian Natural Resources, Methanex, Vermilion Energy, and Whitecap Resources. The Motley Fool has a disclosure policy.

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