Despite a massive intraday decline in oil prices, Canadian equities jumped sharply on Wednesday as a recovery in precious metals prices, improving global market sentiment following the U.S. midterm elections, and growing optimism about Canada-U.S. trade talks encouraged investors to buy stocks. As a result, the S&P/TSX Composite Index surged by 809 points, or 2.3%, to settle at 36,341 — registering its biggest single-day percentage gain in seven months.
Even as a 9% decline in West Texas Intermediate (WTI) crude oil futures prices pressured energy stocks, most other key stock market sectors, including mining, consumer cyclicals, technology, and financials, staged an impressive rally, helping the TSX recover its recent losses and climb back above the psychologically important 36,000-point level.
Top TSX Composite movers and active stocks
As gold and silver prices rose sharply, mining stocks like Discovery Mining, G Mining Ventures, Americas Gold and Silver, and Equinox Gold climbed by more than 12% each, making them the session’s top-performing TSX stocks.
Fairfax Financial (TSX: FFH) was also among the day’s top gainers on the Toronto Stock Exchange, as its shares rallied nearly 11% following the release of its third-quarter financial results. The Toronto-based insurance giant reported quarterly net profit of US$929.6 million, down from US$1.15 billion a year ago, mainly due to investment losses.
However, Fairfax’s gross insurance premiums rose 9.3% year-over-year, while adjusted operating income from its property and casualty insurance businesses increased to US$1.38 billion from US$1.34 billion. The company highlighted its selection by the Indian government to acquire a majority stake in IDBI Bank for roughly US$5.6 billion. These positive developments and continued strength in its insurance operations helped drive FFH stock higher.
In contrast, Vermilion Energy, Enerflex, Superior Plus, and Element Fleet Management plunged by at least 11% each, making them the worst-performing TSX stocks for the day.
Based on their daily trade volume, Ivanhoe Mines, Telus, Canadian Natural Resources, Whitecap Resources, and Cenovus Energy were the five most active stocks on the exchange.
TSX today
Gold and silver prices extended their upward momentum in early Thursday trading, raising hopes of further gains in TSX mining shares at the open today after their impressive performance in the previous session.
Meanwhile, Canadian investors will closely monitor the latest developments in Canada-U.S. trade negotiations after Prime Minister Mark Carney recently indicated that Washington had softened some of its earlier demands.
On the economic front, Bank of Canada Governor Tiff Macklem is scheduled to appear before the Standing Senate Committee on Banking, Commerce and the Economy today. His remarks could provide fresh insights into Canada’s inflation outlook, economic conditions, and the central bank’s future monetary policy decisions.
On the corporate events side, several TSX-listed companies, including NFI Group, Definity Financial, IGM Financial, Saputo, Badger Infrastructure, Pembina Pipeline, Wheaton Precious Metals, Quebecor, Bombardier, TC Energy, BCE, Lightspeed Commerce, Canadian Natural Resources, AtkinsRéalis Group, Brookfield Business Holdings, Open Text, First Majestic Silver, and MDA Space, will announce their latest quarterly results today.
With the TSX coming off an impressive 809-point rally, these developments and earnings releases could influence investor sentiment and market direction throughout today’s session.