Despite a surge in oil prices, Canadian stocks continued to fall for a second consecutive session on Friday as escalating US-Iran tensions and uncertainty surrounding Canada-U.S. trade relations weighed on investor sentiment. The S&P/TSX Composite Index plunged by another 185 points, or 0.5%, to 35,788, marking its lowest close in a week.
Even as a more than 4% intraday jump in West Texas Intermediate (WTI) crude oil prices drove energy stocks higher, weakness in all other main market sectors, including real estate, consumer staples, and mining, pressured the TSX benchmark.
Top TSX Composite movers and active stocks
Mullen Group, Southern Cross Gold, Perpetua Resources, and Air Canada were the worst-performing TSX stocks for the day, with each diving by at least 4.7%.
Shares of Rogers Communications (TSX: RCI.B) also slid 2.3% to $45.36 per share after the Toronto-based telecom giant reported mixed third-quarter financial results. Its quarterly revenue rose 2% year-over-year, backed by growth in its media business and improved operating efficiency.
However, Rogers’ adjusted net profit fell 3% to $701 million due mainly to higher finance costs. Its wireless service revenue also slipped 1% amid intense competition and lower average revenue per user. Last quarter, the company’s postpaid mobile phone net additions also dropped to just 6,000 from 62,000 a year ago. Despite these challenges, Rogers generated $1.4 billion in free cash flow, up 65%, helped by lower capital expenditures, higher adjusted EBITDA, and lower cash income taxes. Overall, weaker adjusted earnings and slowing wireless subscriber growth weighed on investor confidence.
On the brighter side, Methanex, BlackBerry, Vermilion Energy, and Parex Resources climbed by at least 3.3% each, making them the session’s top-performing TSX stocks.
Based on their daily trade volume, Athabasca Oil, Telus, Whitecap Resources, Baytex Energy, and Ivanhoe Mines were the five most active stocks on the Toronto Stock Exchange.
TSX today
Commodity prices were largely mixed in early Monday trading, which could keep the resource-heavy main TSX index nearly flat at the open today.
While no major domestic economic releases are due, Canadian investors will closely monitor fresh developments in Canada-U.S. trade negotiations and rising geopolitical tensions in the Middle East.
Over the weekend, U.S. President Donald Trump suggested that a trade agreement with Canada could be reached soon, while reports indicated that negotiations between the two countries had gained momentum ahead of the November 3 U.S. midterm elections. However, concerns about potential new U.S. military strikes against Iran could keep investors cautious, especially given the risk of further disruptions to global oil supplies.
On the corporate front, TSX-listed Celestica and PrairieSky Royalty are slated to release their third-quarter earnings after Monday’s market close.
These upcoming results, along with developments in trade negotiations and the Middle East, could influence trading sentiment on the TSX throughout the day.
