TSX Today: What to Watch for in Stocks on Thursday, July 23

The TSX climbed to another record high on Wednesday as strength in energy and mining stocks outweighed weakness elsewhere, while investors will watch commodity prices, geopolitical developments, and another busy slate of earnings today.

Key Points
  • The TSX Composite Index reached an all-time high of 35,485, up 0.3%, driven by a strong rally in mining, energy, and utility stocks despite losses in other sectors and ongoing U.S.-Iran tensions.
  • Montage Gold, NovaGold Resources, Southern Cross Consolidated, and Aya Gold & Silver led gains, while Rogers Communications dropped over 4% due to a big net loss reported in its latest earnings.
  • Rising crude oil prices and global energy flow disruptions due to tensions around the Strait of Hormuz may benefit TSX mining and energy stocks, as investors watch earnings releases from FirstService, Teck Resources, Winpak, and Mullen Group.

Despite rising treasury bond yields, corporate earnings, and the widening U.S.-Iran conflict, Canadian stocks extended their gains for a second consecutive session on Wednesday, supported by another strong rally in crude oil and precious metals prices. The S&P/TSX Composite Index advanced by 116 points, or 0.3%, to settle at a fresh all-time high of 35,485.

Although many key market sectors like technology, healthcare, and consumer cyclicals posted steep losses, strong gains in mining, energy, and utility stocks helped lift the TSX benchmark to another record close.

tsx today

Top TSX Composite movers and active stocks

Montage Gold, NovaGold Resources (TSX: NG), Southern Cross Consolidated, and Aya Gold & Silver were the top-performing TSX stocks for the day as they climbed by at least 8.5% each.

Besides strengthening metals prices, the rally in NovaGold stock was also backed by the company’s agreement to acquire Paulson’s 40% interest in the Donlin Gold project through an all-share transaction. The deal would increase NovaGold’s ownership in the Alaska-based project from 60% to 100% and create a U.S.-domiciled gold developer with an estimated equity value of about US$4.2 billion.

In contrast, Bird Construction and Lightspeed Commerce were the day’s worst-performing TSX stocks as they plunged by at least 4.9% each.

With a more than 4% decline, Rogers Communications (TSX: RCI.B) was also among the day’s bottom performers on the Toronto Stock Exchange after its second-quarter earnings report showed a sharp net loss and largely flat adjusted profit. The telecom giant posted a net loss of $665 million, compared with a net profit of $148 million a year earlier, mainly due to a $1 billion non-cash loss tied to the revaluation of its Maple Leaf Sports & Entertainment put liability.

Although Rogers’s total service revenue rose 8%, its adjusted net profit remained almost unchanged, while wireless service revenue was flat, and mobile phone average revenue per user declined. Investors appeared concerned that strong growth in Rogers’s media business was not enough to offset sluggish trends in its core telecom operations. On a year-to-date basis, Rogers stock is now down around 11%.

Based on their daily trade volume, Baytex Energy, B2Gold, Telus, ARC Resources, and Canadian Natural Resources were the five most active stocks on the exchange.

TSX today

Crude oil prices continued to climb in early Thursday trading as renewed threats to shipping through both the Strait of Hormuz and the Bab el-Mandeb raised concerns about a deeper disruption to global energy flows. Meanwhile, metals prices were also trading on a slightly positive note. Given these commodity market trends, TSX mining and energy stocks could continue to trade positively at the open today.

The U.S. completed a 12th consecutive night of strikes on Iran, while Tehran warned that it could further restrict regional oil exports if attacks on its infrastructure continue. These developments followed fresh claims by Iran-backed Houthi forces that they had attacked two Saudi oil tankers in the Red Sea, heightening concerns that disruptions could spread beyond the Strait of Hormuz to another key global shipping route. As a result, markets remain focused on the potential impact of prolonged supply constraints on global energy markets.

Beyond geopolitical headlines, Canadian investors will also monitor fresh corporate earnings releases, as several TSX-listed companies, including FirstService, Teck Resources, Winpak, and Mullen Group, are scheduled to report their latest quarterly results today.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources and Teck Resources. The Motley Fool has positions in and recommends Mullen Group. The Motley Fool recommends Aya Gold & Silver, B2Gold, Canadian Natural Resources, FirstService, Lightspeed Commerce, Rogers Communications, TELUS, and Winpak. The Motley Fool has a disclosure policy.

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