TSX Today: What to Watch for in Stocks on Monday, June 1

The TSX continued to recover on Friday as easing inflation concerns and improving risk appetite supported broad buying, while today’s trading could be driven by commodity markets and fresh geopolitical headlines.

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Key Points
  • The TSX gained support from tech, mining, and consumer stocks on Friday, despite declines in utilities, real estate, and energy sectors.
  • Top gainers included Celestica and Equinox Gold, while MDA Space and Laurentian Bank, which faced high transaction-related charges, were among the worst performers.
  • Investors will watch for the impact of rising crude oil and base metals prices at the TSX opening today, along with developments in the U.S.-Iran conflict affecting energy market volatility.

Canadian stocks continued to climb for a second consecutive session on Friday as improving investor sentiment, easing inflation concerns, and optimism around ongoing U.S.-Iran peace talks supported broad-based buying. These factors helped the S&P/TSX Composite Index climb by 251 points, or 0.7%, for the day to settle at 34,769 — ending the week with a 0.9% gain.

Despite a strong rally in technology and mining stocks, steep declines in some other key sectors, such as utilities, real estate, and energy, trimmed TSX gains.

tsx today

Top TSX Composite movers and active stocks

Celestica, Montage Gold, Equinox Gold, and Aya Gold & Silver were the top-performing TSX stocks for the day, as they climbed by at least 7.8%.

On the flip side, MDA Space, Allied Gold, 5N Plus, and goeasy slipped by at least 3.6% each, making them the day’s worst-performing TSX stocks.

Shares of Laurentian Bank of Canada (TSX: LB) also traded negatively after the lender posted a second-quarter (ended in April) net loss of $20.6 million compared to net income of $32.3 million a year earlier.

The weakness in LB stock came as investors reacted to $58.8 million in transaction-related and restructuring charges linked to its planned sale to Fairstone Bank and the transfer of retail and SME banking operations to National Bank, along with a $22.5 million loss on the sale of its syndicated loan portfolio and a 61% year-over-year jump in provisions for credit losses to $26.9 million. Despite the recent decline, however, Laurentian Bank has seen a 40% rise over the last year.

Based on their daily trade volume, Equinox Gold, Canadian Natural Resources, Open Text, BCE, and Manulife Financial were the five most active stocks on the exchange.

TSX today

Crude oil and base metals prices surged in early trading on Monday, but gold prices trended lower. These commodity market movements point to a potentially mixed start for the resource-heavy TSX benchmark today, with gains in energy and industrial metals stocks likely offsetting weakness in some precious metals miners.

Investors will also continue to monitor developments in the U.S.-Iran conflict after fresh military exchanges over the weekend raised concerns about the durability of the current ceasefire. The U.S. said it conducted strikes on Iranian radar, drone control, and air defence sites near the Strait of Hormuz after what it described as aggressive actions against commercial shipping, while Iran claimed it responded by targeting a U.S.-linked air base. Kuwait also reported intercepting missile and drone attacks, highlighting persistent tensions in the region.

For TSX investors, the key focus remains on energy markets. Any further delays in reaching a deal or reopening the Strait of Hormuz could keep commodity prices and Canadian energy stocks volatile in the near term.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bce, Canadian Natural Resources, Celestica, MDA Space, and Open Text. The Motley Fool recommends Aya Gold & Silver, Canadian Natural Resources, Celestica, and MDA Space. The Motley Fool has a disclosure policy.

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