TSX Today: What to Watch for in Stocks on Wednesday, January 25

TSX investors may want to keep a close eye on the Bank of Canada’s monetary policy event today.

| More on:
tsx today

The Canadian stock market remained volatile on Tuesday, as investors awaited the Bank of Canada’s interest rate decision. After falling by 129 points from its previous closing during the intraday trading yesterday, a recovery in metal and mining stocks later during the volatile session helped the S&P/TSX Composite Index settle at 20,630 with just two points drop for the day.

Despite gains in mining and consumer non-cyclicals market sectors, big declines in the shares of energy and consumer cyclicals companies pressured the TSX benchmark on January 24.

Top TSX Composite movers and active stocks

Shares of Magna International (TSX:MG) plunged by 7.2% to settle at $81.25 per share, making it the worst-performing TSX Composite component for the day.

This selloff in MG stock came after the Aurora-headquartered automotive supplier updated its 2022 outlook to reflect preliminary results for the year. Magna told investors that its 2022 adjusted EBIT (earnings before interest and taxes) margin stood at 4.3% based on the preliminary results, missing its guided range of 4.8% to 5%. The company blamed various factors, including higher labour costs and other operational inefficiencies, for its weak EBIT margin. After this selloff, MG stock now trades with 6.8% gains in January after losing nearly 26% of its value last year.

Ritchie Bros Auctioneers, Vermilion Energy, and Cronos Group were also among the worst-performing Canadian stocks yesterday, as they slipped by at least 3.5% each.

On the positive side, Interfor, Brookfield Business Partners, West Fraser Timber, and Equinox Gold climbed by at least 2.5% each, making them the top performers on the Toronto Stock Exchange.

Based on their daily trade volume, Enbridge, Manulife Financial, Shaw Communications, and Tourmaline Oil were the most active stocks for the day.

TSX today

Commodity prices across the board were trading on a weak note early Wednesday morning, which could take the resource-heavy TSX index lower at the open today. The Canadian central bank is set to announce its latest interest rate decision and release the monetary policy report this morning, which should give further direction to stocks. Besides that, energy investors may also want to keep a close eye on the weekly crude oil stockpiles data from the U.S. market.

On the corporate events front, gold miner NovaGold Resources will release its 2022 earnings reports after the market closing bell on January 25.

Market movers on the TSX today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends Enbridge, Magna International, Ritchie Bros. Auctioneers, Vermilion Energy, and West Fraser Timber. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

construction workers talk on the job site
Metals and Mining Stocks

2 No-Brainer Mining Stocks to Buy With $200 Right Now

You can buy these top Canadian mining stocks with just a $200 investment right now to start your long-term wealth…

Read more »

Concept of multiple streams of income
Stocks for Beginners

Lock Up This 9.2% Dividend Yield From a Top Royalty Stock

Royalty stocks have a strong advantage when it comes to creating passive income for investors. But this one has the…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Is First Quantum Minerals Stock a Good Buy Right Now?

First Quantum is a TSX stock that trades 61% below all-time highs. However, the mining stock still trades at a…

Read more »

nugget gold
Metals and Mining Stocks

The Best Gold Stock to Invest $1,000 in Right Now

Here are two of the best Canadian gold stocks that can yield some eye-popping returns in the long run.

Read more »

nugget gold
Stocks for Beginners

The Ultimate Mining Stock to Buy With $1,000 Right Now

This mining stock just saw a drop, but don't let that keep you from diving in. This miner is due…

Read more »

A plant grows from coins.
Metals and Mining Stocks

Canadian Mining Stocks: Buy, Sell, or Hold?

Explore 2025’s top Canadian mining stocks – gold, uranium, and base metals offer big potential in a dynamic, commodity-driven market.

Read more »

farmer holds box of leafy greens
Metals and Mining Stocks

3 Reasons to Buy Nutrien Stock Like There’s No Tomorrow

Nutrien stock has lost 34% of its value just this year alone and looks incredibly cheap today. Yet, secular trends…

Read more »

Canada national flag waving in wind on clear day
Tech Stocks

Trump Trade: Canadian Stocks to Watch

With Trump returning to the presidency, there are some sectors that could boom in Canada, and others to watch. But…

Read more »