Canadian equities declined at the close on Tuesday, with the S&P/TSX Composite registering a 0.54% loss as pressure from the Materials, Energy and IT sectors pulled overall market performance into negative territory.
Session leaders and laggards
On the winners' list, MDA Ltd (TSX:MDA) led gains, rising 6.05% - a move equal to 2.11 points - to finish at 37.01. TerraVest Industries Inc (TSX:TVK) climbed 5.89%, adding 8.23 points to close at 147.88. Brookfield Business Partners LP (TSX:BBU_u) advanced 5.82%, up 2.68 points to 48.76.
At the other end of the tape, SSR Mining Inc (TSX:SSRM) recorded the steepest drop, sliding 7.86% - or 3.01 points - to 35.30 at the close. Fortuna Mining Corp (TSX:FVI) fell 6.31%, down 0.95 points to 14.11, and Discovery Silver Corp (TSX:DSV) declined 6.19%, a 0.63-point fall to 9.55.
Market breadth was essentially flat: 488 stocks rose while 487 fell, and 66 ended unchanged on the Toronto Stock Exchange.
Volatility and commodities
The S&P/TSX 60 VIX, which captures implied volatility in S&P/TSX Composite options, rose 7.34% to 17.99, reflecting higher option-implied market uncertainty at the close.
Commodities moved lower across several fronts. Gold Futures for April delivery declined 2.92% - a drop of 147.41 - to $4,898.89 a troy ounce. Energy prices were also softer: April delivery crude oil fell 0.96% or 0.60 to $62.15 a barrel, while the April Brent contract dipped 1.94% or 1.33 to trade at $67.32 a barrel.
FX and dollar index
Currency markets showed minimal change for the Canadian dollar: CAD/USD was unchanged at 0.73 (0.00%), and CAD/EUR was essentially flat at 0.62 (0.01% change). The US Dollar Index Futures ticked up 0.23% to 97.04.
Key takeaways
- S&P/TSX Composite closed down 0.54% with Materials, Energy and IT among the sectors exerting downward pressure.
- Notable individual movers included MDA Ltd, TerraVest Industries and Brookfield Business Partners on the upside, and SSR Mining, Fortuna Mining and Discovery Silver on the downside.
- Volatility rose as the S&P/TSX 60 VIX gained 7.34% to 17.99; gold and crude prices declined across major contracts.
Risks and near-term uncertainties
- Elevated option-implied volatility suggests a higher near-term uncertainty for equity traders and hedgers, affecting markets linked to Materials and Energy.
- Weakness in commodity prices may pressure resource-linked equities and related sectors if downward momentum persists.
- Currency stability provides limited buffer; however, unchanged CAD rates do not remove exchange-rate exposure for exporters or commodity producers.