Strengthening commodity prices helped Canadian equities regain strength on Tuesday even as the U.S. completed an 11th consecutive night of strikes on Iran, keeping geopolitical risks firmly in focus. The S&P/TSX Composite Index surged by 409 points, or 1.2%, to settle at 35,369 — erasing all its losses from the previous two sessions and moving back within striking distance of its all-time high.
Even as some key sectors like technology, utilities, and real estate trended lower, solid intraday gains in mining and energy stocks lifted the TSX benchmark higher.
Investors largely looked past lingering geopolitical uncertainty, although developments in the Middle East continued to influence commodity markets.
Top TSX Composite movers and active stocks
Celestica, Discovery Mining, Hudbay Minerals, and Trekor Metals were the top-performing TSX stocks for the day, with each jumping by at least 10.2%.
Shares of Bombardier (TSX:BBD.B) were also among the day’s top gainers on the Toronto Stock Exchange, as they climbed by 3.6% after the business aircraft maker announced a potential major order from Saudi Arabia’s The Helicopter Company.
The two companies signed a letter of intent covering a firm order for 12 Bombardier jets, including five Challenger 3500, five Global 5500, and two Global 8000 aircraft, along with options for 48 additional jets. If finalized and all options are exercised, the deal could expand to as many as 60 aircraft. Investors welcomed the prospect of a large new aircraft order that could support Bombardier’s future deliveries and revenue.
In contrast, Thomson Reuters, West Fraser Timber, Constellation Software, and Bausch Health dived by 3.5% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, Telus, Enbridge, Royal Bank of Canada, Scotiabank, and Whitecap Resources were the five most active stocks on the exchange.
TSX today
West Texas Intermediate crude oil futures prices rallied sharply in early trading on Wednesday to reach their highest level in over five weeks as concerns about global supply disruptions intensified. At the same time, gold and silver prices also remained elevated. These commodity market trends could keep TSX energy and mining stocks in focus at the market open today.
Further disruptions through the Strait of Hormuz and renewed threats to shipping near the Bab el-Mandeb strait will likely remain on investors’ radar after the U.S. completed an 11th consecutive night of strikes on Iranian military targets. While U.S. officials said the Strait of Hormuz remains open for commercial traffic, continued attacks on vessels in the region and fresh warnings from Iran-backed Houthi forces have heightened concerns about global oil supplies.
Beyond geopolitical developments, TSX investors will also keep an eye on corporate earnings as Waste Connections, Choice Properties REIT, and Rogers Communications are set to release their latest quarterly earnings reports today.
Market movers on the TSX today
