Canadian stocks started the new week on a slightly negative note as elevated crude oil prices amid the ongoing supply disruptions in the Strait of Hormuz and stalled U.S.-Iran negotiations weighed on investor sentiment. The S&P/TSX Composite Index slipped by 86 points, or 0.3%, for the day to settle at 33,818 — marking its third consecutive day of decline.
While rising crude oil prices supported a rebound in energy stocks, weakness in many other key market sectors, including consumer cyclicals, mining, and industrials, pressured the TSX benchmark.
Top TSX Composite movers and active stocks
B2Gold, Allied Gold, MDA Space, and Alamos Gold were the day’s worst-performing TSX stocks, with each falling by at least 3.8%.
In contrast, ARC Resources (TSX:ARX) jumped 21% to $31.22 per share, making it the session’s top-performing stock on the Toronto Stock Exchange. This rally in ARX stock came after the Calgary-based energy producer agreed to be acquired by global energy giant Shell (NYSE:SHEL) in a deal valued at about $22 billion, including net debt.
Under the deal, ARC shareholders will receive $32.80 per share in cash and Shell shares, reflecting a nearly 27% premium to ARC’s previous closing price. The stock surged as investors welcomed the attractive takeover premium and the chance for ARC shareholders to benefit from Shell’s larger global energy platform.
Kelt Exploration, Lithium Americas, and Advantage Energy also surged by at least 6.9% each, making them among Monday’s top-gaining TSX stocks.
Based on their daily trade volume, ARC Resources, Enbridge, Baytex Energy, Canadian Natural Resources, and B2Gold were the five most active stocks on the exchange.
TSX today
West Texas Intermediate (WTI) crude oil futures prices climbed closer to US$100 per barrel in early morning trading on Tuesday, which could lift TSX energy shares further at the open today. This strength in oil prices came after Iran offered to reopen the Strait of Hormuz only if the U.S. lifts its blockade and ends the war. However, the proposal could postpone nuclear negotiations, a condition that U.S. president Donald Trump may not accept, keeping the outlook for energy markets uncertain.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest U.S. consumer confidence data this morning. In addition, both the Bank of Canada and the U.S. Federal Reserve will announce their interest rate decisions on Wednesday, which could keep investors cautious.
On the corporate events side, many TSX-listed companies, including ARC Resources, Aecon Group, First Quantum Minerals, and Toromont Industries, will release their latest quarterly results today.
Market movers on the TSX today
