After plunging by 3.7% last week due to the expanding U.S.-Israel-Iran conflict, Canadian stocks started the new week on a slightly positive note as U.S. president Donald Trump’s latest remarks suggested the military campaign against Iran may be nearing its end sooner than initially expected, which also supported a pullback in crude oil prices from their recent multi-year highs. Although the S&P/TSX Composite Index fell by more than 700 points in intraday trading on Monday, hopes of a quicker resolution to the conflict helped it bounce back sharply to close the session with gains of 106 points, or 0.3%, at 33,189.
Despite continued weakness in healthcare and financial stocks, solid gains in most other key market sectors, including technology, energy, and industrials, helped the TSX benchmark finish the highly volatile session in the green.
Top TSX Composite movers and active stocks
Celestica, Methanex, Kinaxis, and Cameco were the top-performing TSX stocks for the day, with each climbing by at least 5.9%.
Shares of Constellation Software (TSX:CSU) also traded positively after the Toronto-based tech giant posted double-digit revenue growth and declared a quarterly dividend. In the fourth quarter, the company’s revenue rose 18% year over year to US$3.18 billion, driven largely by acquisitions and 6% organic growth.
At the same time, Constellation’s cash flows from operations climbed 16% to $788 million, highlighting strong underlying cash generation despite a 61% drop in its quarterly net profit to $110 million due in part to revaluation charges. In addition, the software company announced a $1 per share dividend payable in April, boosting investor confidence.
In contrast, Curaleaf, Badger Infrastructure Solutions, Cargojet, and DPM Metals closed the session at least 2.7% lower each, making them the day’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Cenovus Energy, Tourmaline Oil, and Manulife Financial were the five most active stocks on the Toronto Stock Exchange.
TSX today
Commodity prices across the board were volatile in early morning trading on Tuesday, reflecting ongoing uncertainty around geopolitical developments and energy markets. These swings could lead to uneven sector performance on the resource-heavy TSX at the open today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest existing home sales data from the United States this morning.
On the corporate events side, Peyto Exploration & Development, Franco-Nevada, CES Energy Solutions, and Transcontinental will announce their latest quarterly results today, which could keep these TSX stocks in focus.
Overall, markets could remain sensitive to further updates on geopolitical developments and commodity price movements throughout the day.