Despite the release of significantly cooler-than-expected domestic consumer inflation data, Canadian equities remained mixed on Tuesday as sliding crude oil and natural gas prices weighed on energy stocks. The S&P/TSX Composite Index ended the volatile session with a minor decline of 32 points, or 0.1%, at 24,439.
Despite solid intraday gains in the shares of healthcare, utility, and real estate companies, big declines in shares of commodity-linked market sectors dragged the TSX into the red for the day.
The growing possibility of more rate cuts in Canada
According to Statistics Canada’s latest report, the Consumer Price Index (CPI) climbed by 1.6% year-over-year in September 2024, slowing from the 2% increase seen in the previous month. Interestingly, this marked the smallest annual CPI increase since February 2021 due mainly to a sharp decline in gasoline prices. The latest CPI figures raise the possibility that the Bank of Canada may further ease its monetary policy stance in the coming months as inflation continues to cool.
Top TSX Composite movers and active stocks
Sharp declines in the prices of energy products drove Baytex Energy, International Petroleum, Kelt Exploration, Vermilion Energy, and Tamarack Valley Energy down by at least 5.9% each, making them the day’s worst-performing TSX stocks.
On the flip side, Orla Mining (TSX:OLA) surged by 4.4% to $6.46 per share after announcing that it has fully repaid its US$58.4 million revolving credit facility. This makes the company debt-free, with approximately US$120 million in cash on hand, while the US$150 million credit facility will remain available until August 2027.
Besides strengthening gold prices, strong cash flow from Orla’s Camino Rojo Mine helped it with the repayment. It’s important to note that the Vancouver-based miner currently operates the Camino Rojo Oxide Gold Mine in Mexico and is advancing the South Railroad Project in Nevada, with a focus on its ongoing growth strategy. On a year-to-date basis, Orla stock is now up about 50%.
Bausch Health Companies, Brookfield Business Partners, and Emera also rose more than 4% each, ranking them as standout performers in an otherwise mixed session on the Toronto Stock Exchange.
Based on their daily trade volume, Toronto-Dominion Bank, Canadian Natural Resources, Enbridge, Royal Bank of Canada, and Bank of Nova Scotia were the five most active stocks on the exchange.
TSX today
Gold and silver prices were trading on a firm note early Wednesday morning but West Texas Intermediate crude oil futures prices continued to slide, pointing to a flat open for the resource-heavy TSX index today.
While no major economic releases are due this morning, the recently released CPI figures have strengthened hopes for further monetary easing, which could provide a positive catalyst for Canadian equities in the near term.
