TSX Today: What to Watch for in Stocks on Wednesday, May 27

The TSX retreated from record levels on Tuesday as renewed geopolitical tensions weighed on sentiment, with investors expected to turn their attention to Canadian bank earnings today for direction.

Key Points
  • The TSX fell 177 points on Tuesday, ending a four-session winning streak due to falling precious metals prices and renewed U.S.-Iran tensions.
  • Americas Gold and Silver dropped 3.7% following a deal to settle a gold delivery obligation, while TerraVest Industries and Superior Plus led gains.
  • Watch for oil price trends and Canadian bank earnings announcements from EQB, Scotiabank, Bank of Montreal, and National Bank of Canada today.

After posting a fresh all-time high, the Canadian stock market turned negative on Tuesday as falling precious metals prices and renewed U.S.-Iran conflict took a toll on investor sentiment. The S&P/TSX Composite Index slipped by 177 points, or 0.5%, to settle at 34,654 — snapping its four-session winning streak.

On the one hand, most key market sectors, including healthcare, mining, and consumer staples, led the TSX selloff. On the other hand, utility stocks and some real estate shares helped limit the broader decline as lower bond yields continued to support defensive and interest-rate-sensitive areas of the market.

tsx today

Top TSX Composite movers and active stocks

Americas Gold and Silver (TSX: USA) fell by 3.7% to $8.11 per share, making it one of the worst-performing TSX stocks for the day. This selloff came after the Toronto-based precious metals miner announced an agreement with an affiliate of Royal Gold to settle its remaining gold delivery obligation tied to a previous streaming deal.

Under the agreement, Americas Gold and Silver will immediately deliver 5,000 ounces of gold and issue about 2.65 million shares to settle future obligations linked to 8,861 ounces of gold through 2027. While the company said the move would eliminate more than US$40 million in variable future debt obligations and strengthen its balance sheet, the equity issuance likely weighed on investor sentiment.

Boyd Group Services, Descartes Systems, and Bausch Health Companies were also among the day’s bottom performers on the Toronto Stock Exchange, with each slipping by at least 3.4%.

On the brighter side, TerraVest Industries and Superior Plus stood out as the session’s top-performing TSX stocks, as they surged by at least 6.7% each.

Shares of Vizsla Silver (TSX: VZLA) also climbed more than 6% to $5.13 apiece after the mining firm secured a new 173 million Mexican pesos (or about US$10 million) working capital facility from a Mexican government-backed financial institution to support the development of its flagship Panuco silver-gold project in Mexico. The company said the facility will help fund operating and working capital needs while it continues advancing the high-grade silver-gold asset toward potential production.

Based on their daily trade volume, Enbridge, Canadian Natural Resources, Manulife Financial, BlackBerry, and Whitecap Resources were the five most active stocks on the exchange.

TSX today

After bouncing back from its lowest levels in weeks, West Texas Intermediate (WTI) crude oil futures prices resumed their downward trend in early Wednesday trading, which could pressure TSX energy stocks at the open today.

Renewed geopolitical uncertainty could keep market volatility elevated, especially after recent U.S. strikes targeting Iranian missile sites and mine-laying boats near the Strait of Hormuz raised concerns about whether a lasting ceasefire could hold. Although Iran criticized the attacks, it has continued participating in negotiations, helping calm fears of further escalation.

While no major economic releases are due this morning, TSX investors’ focus will shift to the domestic bank earnings season, with EQB, Bank of Nova Scotia, Bank of Montreal, and National Bank of Canada slated to announce their latest quarterly results today.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bank Of Montreal, BlackBerry, Canadian Natural Resources, and Enbridge. The Motley Fool recommends Bank Of Nova Scotia, Canadian Natural Resources, Descartes Systems Group, EQB, Enbridge, Superior Plus, TerraVest Industries, and Whitecap Resources. The Motley Fool has a disclosure policy.

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