Canadian stocks continued to decline for a second consecutive session after the long holiday weekend as investors continued to assess geopolitical risks after the recent U.S.-China summit in Beijing and elevated oil prices. The S&P/TSX Composite Index plunged by 92 points, or 0.3%, on Tuesday to settle at 33,741 — marking its third decline in the last four sessions.
Despite gains in some key sectors like energy, technology, and utilities, steep declines in healthcare and mining stocks drove the TSX benchmark down.
Top TSX Composite movers and active stocks
Aya Gold & Silver, Americas Gold and Silver, Perpetua Resources, and Energy Fuels were the worst-performing TSX stocks for the day, with each diving by at least 12.3%.
Shares of Agnico Eagle Mines (TSX: AEM) were also among the session’s bottom performers on the Toronto Stock Exchange, as they slipped by 3.8% to $238.35 apiece. This selloff in AEM stock came after the Canadian gold mining firm approved a major investment decision for its Hope Bay project in Nunavut. While the project is expected to produce more than 400,000 ounces of gold annually and generate strong long-term returns, investors apparently focused on the heavy upfront spending needed to build it.
Agnico estimated initial development capital at roughly US$2.4 billion, with first production not expected until 2030. The company said Hope Bay could deliver an after-tax internal rate of return of 26% at current gold prices and has meaningful exploration upside across the 80-kilometre belt. Still, Agnico stock fell as markets weighed the project’s long timeline and large capital commitment against its future growth potential.
On the positive side, goeasy, Strathcona Resources, Thomson Reuters, and Birchcliff Energy climbed by at least 4.9% each, making them the day’s top-performing TSX stocks.
Based on their daily trade volume, Enbridge, Canadian Natural Resources, Manulife Financial, Telus, and Suncor Energy were the five most active stocks on the exchange.
TSX today
West Texas Intermediate (WTI) crude oil prices eased in early Wednesday trading, while gold and silver prices remained under pressure as investors monitored developments around the Strait of Hormuz and broader Middle East tensions. Given these mixed commodity trends, TSX energy stocks could see some profit-taking after recent gains, while weakness in precious metals may continue to pressure mining shares.
In addition to the latest pending home sales data from the U.S., Canadian investors may want to keep a close eye on the domestic consumer inflation report this morning, which could influence expectations around the Bank of Canada’s next interest rate decision.
Market movers on the TSX today
