Canadian stocks started the new week on a bullish note as investors reacted positively to the Federal Reserve Governor Christopher Waller’s recent speech, where he argued that the balance of risks has shifted toward employment, signalling it may be time to reduce interest rates. The S&P/TSX Composite Index soared by 246 points, or 1.1%, on Monday to settle at 23,027, rebounding sharply from its lowest level in over three weeks.
While Waller’s rate cut comments, along with an intraday recovery in commodity prices, helped all key sectors end the session in the green, the TSX rally was mainly led by robust gains in healthcare, financials, technology, and industrial stocks.
Top TSX Composite movers and active stocks
Tilray, Kinaxis, Lundin Gold, Celestica, and BlackBerry were the top-performing TSX stocks for the day, with each surging by at least 3.6%.
In contrast, shares of BRP (TSX:DOO) dived by 6.7% to $79.56 per share, making it one of the day’s worst-performing TSX stocks. The recent weakness in DOO stock started after the Valcourt-based powersports and marine products manufacturer announced its dismal July quarter financial results last week.
Falling powersports retail sales led to a 33.7% year-over-year decline in BRP’s total revenue last quarter, and its adjusted earnings tanked by 81%. As a result, the company lowered its full-year revenue guidance, hurting investors’ sentiments. With this, the stock has seen more than 18% value erosion so far in September.
Methanex and Westshore Terminals Investment were also among the bottom performers on the Toronto Stock Exchange yesterday as they slipped by at least 2.9% each.
Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Cenovus Energy, Manulife Financial, and Great-West Lifeco were the five most active stocks on the exchange.
TSX today
Commodity prices across the board were largely mixed early Tuesday morning, pointing to a flat opening for the TSX index today.
While no major economic releases are due, Canadian investors will keep an eye on the Bank of Canada Governor Tiff Macklem’s speech and press conference at the Canada-United Kingdom Chamber of Commerce.
Market movers on the TSX today
