TSX Today: What to Watch for in Stocks on Wednesday, August 5

The TSX surged to a fresh record high on Tuesday as stronger metals prices and upbeat corporate earnings fueled broad-based buying, while investors will watch another busy slate of earnings, commodity markets, and developments in the Middle East today.

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Key Points
  • The TSX Composite rose 1.6% to 35,802, hitting a new all-time high, driven by a rally in mining, technology, and industrial stocks.
  • Southern Cross Gold surged nearly 19% following an updated exploration target in Australia, while 5N Plus fell by 6%.
  • High metals prices could further boost the TSX at the open today, while investors watch for geopolitical developments, U.S. non-farm employment and PMI data, and notable earnings reports from Shopify, Nutrien, Manulife Financial, and others.

Canadian stocks started the new month on a solid note as falling crude oil prices amid easing geopolitical tensions, largely positive corporate earnings, and surging metals prices boosted investor confidence. The S&P/TSX Composite Index jumped by 575 points, or 1.6%, to settle at a fresh all-time high of 35,802 — registering its biggest single-day percentage gain in over three months.

Despite weakness in some key sectors like real estate and energy, strong intraday rally in mining, technology, and industrial stocks lifted the TSX benchmark.

tsx today

Top TSX Composite movers and active stocks

Southern Cross Gold Consolidated (TSX: SXGC) jumped by nearly 19% to $10.69 per share, making it the top-performing TSX stock for the day. This rally in SXGC stock came after the Canadian gold miner updated the exploration target for its Sunday Creek gold-antimony project in Australia. The company now estimates the project could contain between three million and 4.6 million ounces of gold equivalent at grades ranging from 8.9 to 12.1 grams per tonne.

Southern Cross Gold’s updated target covers five prospects across 1,500 metres of strike and represents less than 15% of the project’s broader 11-kilometre mineralized corridor. The firm also said nine drilling rigs remain active at the site, with another 135 kilometres of drilling planned through the first quarter of 2027.

As precious metals prices rallied sharply, mining stocks like Aya Gold & Silver, Trekor Metals, and Americas Gold and Silver also jumped by more than 15% each, making them among the day’s top gainers on the Toronto Stock Exchange.

On the flip side, 5N Plus (TSX: VNP), Vermilion Energy, Baytex Energy, and Bausch Health were the session’s worst-performing TSX stocks, with each diving by at least 6%.

This selloff in 5N Plus stock came a day after the specialty semiconductor materials producer posted narrower margins despite strong second-quarter revenue and earnings growth. The company revenue rose 28% year over year in the June quarter to US$122.4 million.

However, 5N’s adjusted gross margin as a percentage of sales fell to 30.3% from 34.6% due to higher metal input and chemical costs, along with temporary operating inefficiencies tied to capacity expansion. The company also warned that input and operating costs could remain elevated as the business environment stays complex.

Based on their daily trade volume, Telus, Enbridge, Equinox Gold, BCE, and Barrick Mining were the five most active stocks on the exchange.

TSX today

Metals prices extended their rally in early trading on Wednesday, which could lift the commodity-heavy main TSX index at the open today.

While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest U.S. non-farm employment and services purchasing managers index (PMI) data this morning.

More importantly, reports that the United States, Iran, and Oman were nearing an interim agreement to reopen the Strait of Hormuz could influence commodity prices and broader market sentiment today. The proposed 60-day arrangement could route inbound ships through Iranian waters and outbound vessels through Omani waters, while work begins to clear mines from a central shipping lane.

On the corporate events side, several TSX-listed companies, including Sprott, Brookfield Asset Management, Shopify, Thomson Reuters, Fortuna Mining, Kinaxis, Manulife Financial, Nutrien, Labrador Iron Ore Royalty, Lundin Mining, Equinox Gold, and Killam Apartment REIT, will release their latest quarterly earnings reports today.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bce, Enbridge, Kinaxis, and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Aya Gold & Silver, Brookfield Asset Management, Enbridge, Kinaxis, Nutrien, TELUS, Thomson Reuters, and Vermilion Energy. The Motley Fool has a disclosure policy.

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