Author: TSX Stocks

Canada stocks lower at close of trade; S&P/TSX Composite down 0.54%

At the close in Toronto, the S&P/TSX Composite lost 0.54%.

The best performers of the session on the S&P/TSX Composite were Celestica Inc. (TSX:CLS), which rose 9.12% or 11.80 points to trade at 141.22 at the close. Meanwhile, Capital Power Corporation (TSX:CPX) added 2.57% or 1.57 points to end at 62.59 and TransAlta Corp (TSX:TA) was up 2.09% or 0.39 points to 19.09 in late trade.

The worst performers of the session were Enghouse Systems Ltd (TSX:ENGH), which fell 12.89% or 4.05 points to trade at 27.36 at the close. OceanaGold Corporation (TSX:OGC) declined 5.34% or 0.23 points to end at 4.08 and HudBay Minerals Inc (TSX:HBM) was down 5.15% or 0.67 points to 12.34.

Falling stocks outnumbered advancing ones on the Toronto Stock Exchange by 576 to 367 and 89 ended unchanged.

Shares in Celestica Inc. (TSX:CLS) rose to all time highs; rising 9.12% or 11.80 to 141.22.

The S&P/TSX 60 VIX, which measures the implied volatility of S&P/TSX Composite options, was down 19.67% to 7.39 a new 3-months low.

Gold Futures for February delivery was down 1.55% or 41.99 to $2,667.41 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January rose 1.47% or 1.03 to hit $71.05 a barrel, while the February Brent oil contract rose 1.23% or 0.90 to trade at $74.31 a barrel.

CAD/USD was unchanged 0.11% to 0.70, while CAD/EUR unchanged 0.43% to 0.67.

The US Dollar Index Futures was down 0.01% at 106.63.

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Canadian miners should brace for the impact of Trump’s tariffs

Dr. Tamer Elbokl, Editor in Chief

In 2024, the mining industry saw some significant mergers and acquisitions. To mention but a few, Piedmont Lithium and Sayona Mining merged to create a leading North American lithium producer, Integra Resources and Florida Canyon Gold formed a new Great Basin precious metals producer, and Gold Fields completed the acquisition of Osisko Mining. Additionally, the global mining market in Q3 2024 witnessed deals worth $23 billion, a 42% increase compared to Q3 2023.

In 2025, the nature of the beast the Canadian mining sector will have to face has changed. In a recent interview on CBC Radio’s Labrador Morning, I was asked about the impact, particularly on iron ore and nickel produced in Newfoundland and Labrador, of the proposed 25% tariff by the U.S. President-elect Trump. My answer was that it will have a huge impact, not just on Labrador’s iron ore and nickel, but also on all minerals exported to the U.S. from Canada and could significantly impact both the U.S. and Canadian economies. Trump’s proposed tariffs on Canadian mineral imports could disrupt trade, increase costs for U.S. manufacturers, and negatively affect the Canadian mining industry. A decline in exports to the U.S. could negatively impact Canada’s mining sector, leading to potential job losses and reduced economic activity in regions dependent on mining.

According to several recent articles from S&P Global, Financial Times, and our sister website, MINING.COM, Trump’s tariffs would drive up metals’ costs for manufacturers. Because the U.S. imports substantial amounts of critical minerals from Canada, imposing tariffs would raise the cost of these essential materials for U.S. manufacturers, potentially leading to higher production expenses and increased prices for goods in the U.S., and eventually contributing to inflation.

On page 26 of this issue, Steve Gravel discusses how Canada can develop a trade strategy that exempts critical mineral exports from these tariffs, and he argues that we need to position Canada as an indispensable trading partner to the U.S., focusing on bilateral agreements that highlight mutual economic benefits, thus aligning Canadian exports with U.S. priorities such as job creation (personally, I prefer imposing tariffs on Tesla EVs).

Also in this combined issue, we focus on international mining topics. Canada’s mining sector is highly international and plays a significant role in the global mining industry. Canada is home to 75% of the world’s mining companies, with over 1,400 mining and exploration companies listed on the Toronto Stock Exchange (TSX) and TSX Venture Exchange. Additionally, Canadian companies have operations in more than 100 countries, making it a dominant force in the global mining industry.

Thousands of Canadian mining supply and services companies are also working with the sector internationally. International success stories of Canadian miners are covered in articles on pages 18 to 31, in addition to several topics related to international mining.

Our regular columns also discuss international mining issues. On page 8, our Law column reflects on the risk management considerations for mining companies when expanding abroad. The issue also contains several articles on technology, equipment, and more

Finally, our team wishes our readers Happy Holidays and a Happy New Year! Our next issue is February/March (PDAC 2025) issue which will feature our annual review on the state of mining in Ontario, including a report on top development projects, the Ontario Mining Association’s annual address, and a look at the new technology and innovations emerging from the rich vein of suppliers in the province. Relevant editorial contributions can be sent directly to the Editor in Chief no later than Feb. 10th, 2025.


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Federal government sells its Air Canada stake

The federal government has sold its roughly 6-per-cent stake in Air Canada in the past few days, according to a source.

Ottawa bought $500-million in Air Canada AC-T shares for about $23.18 apiece in April, 2021, becoming the biggest investor as part of a bailout package that aimed to shore up the finances of Canada’s largest airline, which lost billions in the COVID-19 shutdown.

The average selling price was about $25 a share over the past few days, according to the source, whom the Globe is not identifying because they are not authorized to speak publicly on the matter.

A government spokeswoman declined to comment on Thursday.

“The government does not intend to be a long-term shareholder of Air Canada and the shares will be divested in due course,” Ministry of Finance spokeswoman Marie-France Faucher said in September.

Peter Fitzpatrick, an Air Canada spokesperson, declined to comment.

Air Canada shares were trading at about $25.45 on the Toronto Stock Exchange on Thursday and have risen by 60 per cent in the past three months.

As part of the selloff, Ottawa unloaded 14 million shares in the past two days through two large block trades, one for 4.15 million shares on Wednesday and another for 10.13 million shares early Thursday, according to trading data reviewed by The Globe and Mail. The average weighted price for these sales was $25.02 per share.

The federal government announced the Air Canada investment as part of an aid package in April, 2021, almost a year into the pandemic that halted most airline traffic and closed borders. The domestic aviation industry was lobbying intensely for financial help to limit deep losses, pointing to large aid packages given to their international rivals.

Ottawa’s aid to Air Canada came with conditions that the carrier provide customer refunds, protect jobs and limit executive compensation.

During the pandemic, Air Canada laid off more than half of its 38,000 employees and grounded much of its fleet, posting a total loss of $9.9-billion between 2020 and 2022. The airline has since ridden a global recovery in demand for travel to post profits, add routes and expand its fleet.

The Air Canada share sale took place against a background of strong stock market performance, with the benchmark S&P/TSX Composite Index up 22.4 per cent year to date.

In the past month, the rally in stock prices has prompted investment banks to serve up a series of stock sales, including two large equity sales from consumer-focused companies, a sector that also includes Air Canada.

Recent stock sales came from clothing retailer Groupe Dynamite Inc., where the founder raised $300-million from an initial public offering, and a $100-million equity sale from Dentalcorp Holdings Ltd. In Calgary, Tourmaline Oil Corp. raised $345-million by selling a portion of its stake in Topaz Energy Corp.

TSX drops to two-week low amid econ

TSX drops to two-week low amid econ

TSX drops to two-week low amid econ

CANADA-STOCKS/ (UPDATE 1):CANADA STOCKS-TSX drops to two-week low amid economic growth concerns, Trump’s tariff threats

Reuters

Published13 Dec 2024, 04:57 AM IST
TSX drops to two-week low amid econ
TSX drops to two-week low amid econ

(Updated at 10:38 a.m. ET/ 1538 GMT)

By Ragini Mathur and Nikhil Sharma

Dec 12 (Reuters) – Canada’s main stock index dropped to a more-than-two-week low on Thursday, dragged by commodity stocks, as investors grew nervous about the domestic economic growth amid looming tariff threats by Donald Trump.

The Toronto Stock Exchange’s S&P/TSX composite index was down 209.55 points, or 0.82%, at 25,448.45, and was trading at its lowest since Oct. 31.

At least nine sectors on the index nursed losses, led by the commodity-focussed sectors, with materials falling 2.1%, tracking gold and copper prices.

The heavyweight energy also declined 2% as oil prices decreased following forecasts of ample supply, which offset the optimism around a potential U.S. interest rate cut.

The Canadian central bank slashed its key policy rate by 50 basis points on Wednesday to help boost the country’s slower growth.

“This is the fifth consecutive rate cut and another super-sized cut as well” and “signals a weaker-than-expected economy in Canada,” said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.

“Adding to this are the ongoing tariff discussions,” Ahmed continued, which he said are among the factors that are “creating a sense of unease in the markets”.

Trump’s tariff threats have raised fears of a trade war between the U.S. and Canada, with the majority of Canadian oil exports sent across the border.

Among individual stocks, Empire Company jumped 7.6% to scale to an all-time high after the food and retail distribution company surpassed estimates for second-quarter profit.

Imperial Oil fell 4.8% following its forecast of higher crude production in 2025, as the Canadian energy major expects to ramp up output from existing oil sands assets.

Stateside, producer prices rose more than anticipated in November, while weekly jobless claims unexpectedly rose last week. (Reporting by Ragini Mathur; Editing by Vijay Kishore)

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

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First Published:13 Dec 2024, 04:57 AM IST

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