Despite much cooler-than-expected domestic consumer inflation data, Canadian stocks started the new week on a negative note as continued geopolitical tensions amid the ongoing U.S.-Iran conflict kept investors cautious and put pressure on risk-sensitive sectors. The S&P/TSX Composite Index plunged by 304 points, or 0.9%, on Monday to 34,960 — marking its third consecutive daily drop and settling below the key 35,000 level for the first time in eight sessions.
While a rebound in metals prices, especially copper, lifted the mining sector, heavy intraday losses in financial, healthcare, and industrial stocks dragged the TSX benchmark down.
Top TSX Composite movers and active stocks
Aecon Group, Finning International, ATS, and Toromont Industries were the worst-performing TSX stocks for the day, with each diving by at least 3.2%.
On the flip side, Ero Copper, TransAlta, Trekor Metals, and Empire Company climbed by at least 3.7% each, making them the session’s top-performing TSX stocks.
Shares of Lundin Mining Corp (TSX:LUN)were also among the top gainers on the Toronto Stock Exchange, as they rose by 3%. There was no major company-specific update behind the move during the day. However, early Tuesday morning, Lundin Mining said severe winter weather had disrupted operations at its Candelaria and Caserones mines in Chile.
While mining at Lundin Mining’s Candelaria complex was affected by heavy rainfall, and Caserones remained temporarily suspended due to snowfall and power disruptions, the company maintained its full-year production guidance. Lundin added that the weather system had begun to weaken and that operations at Caserones were expected to resume once power and site access were restored.
Based on their daily trade volume, Canadian Natural Resources, Telus, Enbridge, Cenovus Energy, and Royal Bank of Canada were the five most active stocks on the exchange.
TSX today
Commodity prices across the board rallied sharply in early trading on Tuesday, which could support a rebound in the resource-heavy main TSX index at the open today.
While no major economic or corporate releases are scheduled this morning, Canadian investors will remain focused on geopolitical developments in the Middle East as the U.S. and Iran exchanged attacks for a 10th consecutive night.
These developments could keep volatility elevated in global financial markets, especially due to rising crude oil prices. Even so, hopes for renewed diplomacy have not completely faded, with mediators continuing efforts to revive talks between Washington and Tehran. Against this backdrop, movements in oil prices and fresh geopolitical headlines are likely to remain the primary drivers of TSX trading today.
