Canadian equities continued to recover for the second consecutive session on Tuesday with the help of a recovery in banking shares. The S&P/TSX Composite Index rose 135 points, or 0.7%, in the last session to settle at 19,655.
Despite weakness in the shares of utility and consumer noncyclical companies, strong gains in other key stock market sectors, such as healthcare, energy, and financials, drove the TSX index higher.
In a move that seemed to calm markets after the recently emerged banking crisis, U.S. Treasury Secretary Janet Yellen said, “the United States remains the strongest and safest financial system in the world.” The government could take more actions to protect depositors “if smaller institutions suffer deposit runs that pose the risk of contagion,” she added.
Top TSX Composite movers and active stocks
Precision Drilling, Tilray Brands, Canopy Growth, and Crescent Point Energy were the top-performing Canadian stocks for the session, as they inched up by at least 7.4% each.
In contrast, shares of First Majestic Silver (TSX:FR) crashed by 22.4% to $7.90 per share, making it the worst performer on the Toronto Stock Exchange for the day. This big selloff in FR stock came a day after the Vancouver-headquartered precious metals miner announced the suspension of its mining activities and workforce reduction at the Nevada-based Jerritt Canyon gold mine with an aim to cut costs by lowering investments.
Based on First Majestic’s 2022 results, Jerritt Canyon accounted for nearly 21% of its total revenues, making it the company’s third-biggest revenue-generating mine. After yesterday’s sharp declines, FR stock now trades with 30% year-to-date losses.
Metal mining stocks like Fortuna Silver Mines, Sandstorm Gold, Endeavour Silver, and Seabridge Gold were also among the worst-performing TSX stocks yesterday, as they plunged by more than 5% each due to a weakness in precious metals prices.
Based on their daily trade volume, Suncor Energy, Canadian Imperial Bank of Commerce, TD Bank, and Canadian Natural Resources were the most heavily traded stocks on the exchange.
Commodity prices across the board showcased weakness early Wednesday morning, pointing to a slightly lower open for the main TSX index today. While no important domestic economic releases are due, Canadian investors will focus on the U.S. Federal Reserve’s latest interest rate decision and economic projections this afternoon, which could add to the market volatility.
On the corporate events front, the TSX-listed collision repair centres operator Boyd Group Services will announce its fourth-quarter results on March 22. Street analysts expect the Winnipeg-headquartered company to report US$0.80 per share in earnings with the help of US$621.7 billion in revenue.