Despite worries about the escalating conflict in Western Asia, Canadian stocks started the new week on a strong note as strong gains in crude oil prices and stronger-than-expected manufacturing data from both sides of the border boosted investor confidence and supported cyclical sectors. The S&P/TSX Composite Index inched up by 201 points, or 0.6%, to settle at a new all-time high of 34,541.
Even as weakness in utility, real estate, and healthcare sectors limited some of the upside, solid gains in energy, financials, and industrial stocks helped lift the TSX benchmark to another record close.
Top TSX Composite movers and active stocks
Energy Fuels, NovaGold Resources, Cameco, and Finning International were the top-performing TSX stocks for the day, with each climbing by at least 6.5%.
However, shares of Air Canada (TSX:AC) plunged 6.7% to $19.25 apiece, making it the day’s worst-performing TSX stock. The selloff in AC stock followed a company update announcing the suspension of all flights to and from Dubai and Tel Aviv due to the ongoing military situation in the Middle East.
The Canadian flag carrier said services to these destinations will remain halted until at least March 23, and advised customers not to head to the airport if travelling from affected regions. While the move prioritizes passenger safety, the sudden route suspensions could temporarily pressure Air Canada’s international traffic and revenue on affected corridors. Concerns about operational disruption and potential demand softness tied to geopolitical instability appeared to weigh on investor sentiment, sending AC shares sharply lower.
Hudbay Minerals, Endeavour Silver, and Curaleaf were also among the session’s bottom performers on the Toronto Stock Exchange, with each diving by at least 5%.
Based on their daily trade volume, Suncor Energy, Canadian Natural Resources, Cenovus Energy, Whitecap Resources, and Baytex Energy were the five most active stocks on the exchange.
TSX today
After concluding Monday’s trading with nearly 5.8% gains, West Texas Intermediate (WTI) crude oil futures jumped by another 5% in early morning trading on Tuesday. This rally comes amid the heating up of geopolitical tensions in Western Asia and concerns about potential supply disruptions. Given that, TSX energy stocks could continue to see strong buying interest at the open today.
While no major economic releases are due this morning, Canadian investors will continue to closely monitor developments in Western Asia for any signs of further escalation or response. Headlines around potential supply disruptions or retaliatory measures could drive intraday volatility.
On the corporate events front, the TSX-listed companies NexGen Energy, Paramount Resources, and Pet Valu will announce their latest quarterly results today.