Canadian stocks started November on a bullish note as an intraday decline in oil prices eased inflation concerns, while a recovery in metals prices, hopes of reviving Canada-U.S. trade talks, and some positive corporate updates helped the market regain some of its lost ground following Friday’s steep selloff. The S&P/TSX Composite Index climbed by 181 points, or 0.5%, on Monday to settle at 35,801, but still remained below the widely followed 50-day moving average.
Even as sharp declines in energy prices pressured the energy sector, strong gains in mining, real estate, consumer cyclical, and industrial stocks guided the TSX benchmark higher.
Top TSX Composite movers and active stocks
Curaleaf Holdings (TSX: CURA) jumped 9% to $12.83 per share, making it the session’s top-performing TSX stock. This rally in CURA stock came after the cannabis firm revealed that it has acquired an equity stake and certain operating rights in Boone Town Provisions, a high-performing cannabis dispensary in Boonton, New Jersey.
The deal expands Curaleaf’s retail presence to four dispensaries in New Jersey and 191 locations across the United States. Curaleaf expects the acquisition to immediately contribute positively to its New Jersey business while strengthening its market position and expanding customer access to its cannabis brands. On a year-to-date basis, CURA stock is now up 25%.
Shares of Colliers International Group (TSX: CIGI) also surged 8% after its majority-owned subsidiary Englobe announced an agreement to acquire Obsidian Engineering, a Calgary-based engineering firm specializing in engineering, procurement, and construction management services.
The acquisition will add more than 400 professionals to Englobe’s workforce and strengthen its engineering and project delivery capabilities in Western Canada. Investors appeared encouraged by the acquisition’s potential to strengthen Colliers’ engineering services business and support its long-term growth, driving CIGI stock higher.
Aecon Group and Brookfield Asset Management were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 6.7%.
On the flip side, oil and gas stocks like Baytex Energy, Strathcona Resources, Vermilion Energy, and Spartan Delta fell by more than 8% each due to weaker crude prices, making them the worst-performing TSX stocks for the day.
Based on their daily trade volume, Enbridge, Whitecap Resources, Cenovus Energy, Manulife Financial, and Athabasca Oil were the five most active stocks on the exchange.
TSX today
Oil prices showed strength in early Tuesday trading following reports of limited U.S. military strikes on Iran’s Qeshm Island near the Strait of Hormuz, raising fresh concerns about potential disruptions to global energy supplies. At the same time, gold, silver, and copper prices fell sharply.
While higher crude oil prices could renew inflation concerns and increase uncertainty surrounding the Bank of Canada’s future interest rate decisions, sharp declines in metals prices could put additional pressure on TSX mining stocks at the open today.
In addition to the latest U.S. JOLTS job openings report, Canadian investors will keep an eye on remarks about the economy by Bank of Canada Governor Tiff Macklem, who will appear before a parliamentary finance committee at 11 a.m. ET today. His remarks could provide fresh insights into Canada’s inflation outlook and the central bank’s future monetary policy decisions.
On the corporate events side, many large TSX-listed companies, including Suncor Energy, Intact Financial, Ivanhoe Mines, SSR Mining, Triple Flag Precious Metals, Denison Mines, Dream Industrial REIT, Boardwalk REIT, Element Fleet Management, Curaleaf Holdings, Fairfax Financial, TransAlta, Shopify, Thomson Reuters, and Fortis, will release their latest quarterly earnings reports today, which could keep their shares in focus throughout the session.
Meanwhile, as the U.S. midterm elections take place today, TSX investors will closely monitor the political developments for their potential impact on U.S. economic policies and Canada-U.S. trade relations.