TSX Today: What to Watch for in Stocks on Tuesday, October 6

After extending its rebound on Monday, TSX investors will weigh weaker oil prices against stronger metals at the open today, with fresh Canadian economic data and ongoing geopolitical risks also in focus.

Key Points
  • The TSX Composite gained 16 points on Monday, backed by rising silver and copper prices and hopes for a more accommodating U.S. Fed.
  • Athabasca Oil surged 13.5% after agreeing to be acquired by Cenovus Energy in a deal valued at approximately $5.8 billion, while Cenovus shares fell 3% amidst financing concerns.
  • Lower WTI crude may pressure TSX energy stocks at the open today, but higher metals prices could support mining shares, with attention on Canadian PMI data, Canada-U.S. trade negotiations, and geopolitical risks.

Canadian equities continued to trade positively for the second consecutive session on Monday as a rebound in silver and copper prices, coupled with investors’ growing expectations for a more accommodative U.S. Federal Reserve, helped support broader market sentiment. Despite facing pressures from weaker oil and gold prices, the S&P/TSX Composite Index ended the volatile session with a 16-point gain at 35,519.

Technology stocks extended their rally. On the other hand, weakness in many other key sectors like real estate, healthcare, and consumer staples dragged on the broader market and prevented the TSX from building a more convincing advance.

tsx today

Top TSX Composite movers and active stocks

Athabasca Oil (TSX: ATH) jumped 13.5% to around $12 per share, making it the top-performing TSX stock for the day. This buying spree in ATH stock came after the Calgary-based energy firm agreed to be acquired by Cenovus Energy (TSX: CVE) in a cash-and-stock transaction valued at roughly $5.8 billion in equity and $5.7 billion on an enterprise-value basis.

Under the deal, Athabasca shareholders are set to receive $12 per share, reflecting a 14% premium to the stock’s 20-day volume-weighted average price, with the overall consideration expected to consist of 65% to 75% cash and 25% to 35% Cenovus shares. While investors cheered the takeover premium for Athabasca, Cenovus Energy shares fell about 3% yesterday, likely reflecting the near-term financing and integration implications of the large acquisition.

Spartan Delta, Shopify, and Kelt Exploration were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 3.9%.

On the flip side, Allied Properties REIT, Russel Metals, Vizsla Silver, and TFI International slipped by at least 3.2% each, making them the session’s worst-performing TSX stocks.

Based on their daily trade volume, Canadian Natural Resources, Athabasca Oil, TD Bank, Cenovus Energy, and Enbridge were the five most active stocks on the exchange.

TSX today

West Texas Intermediate (WTI) crude oil futures prices fell to their lowest level in more than a month in early Tuesday trading, while metals prices largely trended higher. Given these mixed commodity signals, TSX energy stocks could face early pressure today, while strength in metals may provide some support to mining shares.

In addition to the domestic purchasing managers’ index (PMI) data, Canadian investors may also want to monitor developments in the Canada-U.S. trade dispute, where formal negotiations remain stalled. Although the overall economic impact may remain limited, businesses with tightly integrated cross-border supply chains continue to face higher costs and greater uncertainty.

Meanwhile, geopolitical risks around the Strait of Hormuz and the Red Sea could keep energy markets volatile after fresh attacks on tankers and Saudi energy infrastructure.

Given these mixed signals, TSX investors may remain cautious while watching commodity prices, trade headlines, and interest-rate expectations today.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Enbridge, Shopify, and Toronto-Dominion Bank. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Canadian Natural Resources, Enbridge, Russel Metals, and TFI International. The Motley Fool has a disclosure policy.

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