Canada’s main stock index extended its losing streak on Thursday, falling for a fourth straight session as investors grappled with an escalating Canada-U.S. trade dispute and rising geopolitical tensions in the Middle East.
The S&P/TSX Composite Index dropped 400 points, or 1.1%, to close at 35,506, its lowest closing level since July 31. The decline came despite cooler-than-expected U.S. wholesale inflation data, which helped lift financial stocks but was not enough to offset steep losses across mining, utilities, and real estate sectors.
Mining stocks bore the brunt of the selloff as metals prices tumbled. Trekor Metals, Capstone Copper, NGEx Minerals, and AbraSilver Resource each fell by at least 8.5%, making them the worst performers on the exchange for the day.
Aya Gold & Silver also ranked among the session’s weakest stocks, slipping 4.7% to $39.32 per share. The decline came a day after the company released an updated preliminary economic assessment for its Boumadine project in Morocco. The new study more than doubled the project’s estimated after-tax net present value to US$3.5 billion, with a 93% internal rate of return and a payback period of 0.7 years. However, the improved figures were partly driven by higher assumed gold and silver prices, while initial capital costs for the project rose 4% to US$463 million. Those offsetting factors, combined with the broader slide in metals prices, appeared to weigh on the stock despite the stronger project economics.
Not all stocks moved lower. Bird Construction, Cargojet, 5N Plus, and International Petroleum were among the day’s top performers, each gaining at least 1.9%. In terms of trading activity, Enbridge, Canadian Natural Resources, Telus, Cenovus Energy, and TC Energy were the five most actively traded names on the exchange.
Looking ahead, crude oil and natural gas prices fell sharply in early Friday trading, while metals prices were mixed, suggesting energy stocks on the TSX could remain under pressure. No major domestic economic data is scheduled for release, but investors were watching for the latest U.S. consumer inflation report and consumer sentiment figures.
Trade tensions remain a key focus for markets, with a new round of U.S. tariffs set to take effect September 15. The tariffs, at a rate of 50%, are expected to apply to a range of Canadian products including aluminum bars and rods, certain paper products, and iron and steel goods. Formal trade talks between Canada and the U.S. remain on hold, leaving uncertainty around potential retaliation that could keep trade-sensitive stocks in focus.
Ongoing conflict in the Middle East was also cited as a factor likely to continue driving volatility in energy prices and broader market sentiment.
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