TSX Today: What to Watch for in Stocks on Monday, September 21

TSX investors will closely watch Tiff Macklem’s speech today for fresh interest rate clues, while weaker commodity prices and Canada-U.S. trade uncertainty could also shape market sentiment.

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Key Points
  • The TSX fell 68 points to 35,807 on Friday due to lower oil prices and ongoing Canada-U.S. trade issues, despite gains in healthcare and financials.
  • Thomson Reuters and Open Text dropped, while Allied Gold rose 7.4% on milestones at its Kurmuk Mine.
  • Falling oil and gold prices may pressure the TSX at the open today, with focus on Bank of Canada Governor Tiff Macklem’s speech, U.S.-Iran diplomatic progress, and the Canada-U.S. trade dispute.

Canadian stocks trended lower on Friday as easing crude oil prices amid growing hopes for renewed U.S.-Iran diplomacy weighed on energy shares, while persistent trade uncertainty between Canada and the United States kept broader market sentiment cautious. The S&P/TSX Composite Index slipped by 68 points, or 0.2%, for the day to settle at 35,807, but ended the week with a 109-point gain.

Even as healthcare and financial stocks saw renewed buying, sharp declines in most other key market sectors, including consumer staples, energy, and industrials, dragged the TSX benchmark lower for the session.

tsx today

Top TSX Composite movers and active stocks

Thomson Reuters, Open Text, Kelt Exploration, and Empire Company were the day’s worst-performing TSX stocks, with each plunging by 3.4%.

On the brighter side, Allied Gold (TSX: AAUC) jumped 7.4% to $32.30 per share, making it the session’s top-performing TSX stock. This rally in AAUC stock came after the miner reported major commissioning milestones at its Kurmuk Mine in Ethiopia. It said the project has been connected to the Ethiopian electrical grid and first ore has already been fed through the crushing circuit.

Allied Gold expects to introduce first ore to the grinding circuit in the coming weeks, with first gold production expected shortly thereafter. Once fully operational, the Kurmuk mine is expected to produce between 240,000 and 270,000 ounces of gold in its first full year and roughly 300,000 ounces in the following year.

Montage Gold, Southern Cross Gold Consolidated, and G Mining Ventures were also among the session’s top gainers on the Toronto Stock Exchange, as they climbed by at least 4% each.

Based on their daily trade volume, Canadian Natural Resources, Telus, Equinox Gold, Enbridge, and Whitecap Resources were the five most active stocks on the exchange.

TSX today

Crude oil and gold prices fell in early trading on Monday, which could pressure the commodity-heavy TSX index at the open today.

While no major economic releases are due, Canadian investors may want to keep an eye on Bank of Canada Governor Tiff Macklem’s speech in Halifax today for any fresh clues about the central bank’s policy outlook. With the Canadian central bank recently keeping its benchmark rate unchanged, his comments on inflation, economic growth, and trade-related risks could influence rate-sensitive TSX sectors.

Any signs of progress toward U.S.-Iran diplomacy could keep downward pressure on oil prices, while renewed escalation in the conflict could quickly reverse that trend. Meanwhile, the Canada-U.S. trade dispute remains another key uncertainty, which could continue to weigh on business confidence and cross-border investment decisions.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Enbridge, and Open Text. The Motley Fool recommends Canadian Natural Resources, Enbridge, TELUS, and Thomson Reuters. The Motley Fool has a disclosure policy.

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