Stock Markets August 31, 2026 04:30 PM

Toronto stocks close lower as Materials, Real Estate and IT slide; S&P/TSX down 0.78%

Broad decline across key sectors; oil posts notable gains while volatility edges higher

By Derek Hwang
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Canada's main equity gauge ended the session in negative territory, weighed down by losses in Materials, Real Estate and Information Technology. The S&P/TSX Composite fell 0.78% as more issues declined than advanced. Oil prices climbed, gold futures softened and measures of market volatility ticked up.

Toronto stocks close lower as Materials, Real Estate and IT slide; S&P/TSX down 0.78%
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Key Points

  • S&P/TSX Composite closed down 0.78% as Materials, Real Estate and IT sectors led losses.
  • Market breadth favored decliners, with 519 stocks down versus 478 advancers; VIX for the index rose to 13.61.
  • Oil prices climbed sharply, while December gold futures fell; select energy and materials names showed mixed performance.

Canada's stock market finished lower on Monday as weakness in several heavyweight sectors pushed the S&P/TSX Composite into negative territory. At the close in Toronto, the index was down 0.78%.


Market breadth and volatility

Decliners outnumbered advancers on the Toronto Stock Exchange, with 519 names losing ground against 478 that rose, while 57 were unchanged. The S&P/TSX 60 VIX - the index that reflects implied volatility for S&P/TSX Composite options - rose 2.79% to 13.61, signaling a modest increase in short-term option-based volatility.


Top performers

  • NFI Group Inc (TSX:NFI) led gains, adding 3.10% or 0.70 points to close at 23.25.
  • Vermilion Energy Inc. (TSX:VET) advanced 2.36% or 0.41 points to finish at 17.77.
  • Parex Resources Inc (TSX:PXT) rose 2.30% or 0.64 points to end the session at 28.52.

Largest declines

  • Bombardier Inc (TSX:BBDb) was the biggest decliner, falling 5.97% or 19.03 points to close at 299.84.
  • Ero Copper Corp (TSX:ERO) slipped 4.48% or 2.42 points to 51.57.
  • Lundin Mining Corporation (TSX:LUN) dropped 4.45% or 1.73 points to 37.11.

Commodities and currency moves

Precious and energy markets moved in different directions during the session. Gold futures for December delivery declined 0.73% or 33.26 to trade at 4,496.64 a troy ounce. In contrast, crude oil gained ground - the October West Texas Intermediate contract rose 3.51% or 2.93 to $86.33 a barrel, while the December Brent contract climbed 5.33% or 4.59 to trade at $90.71 a barrel.

On the foreign-exchange front, the Canadian dollar was effectively unchanged versus major peers in the snapshots provided: CAD/USD was listed at 0.72 with an unchanged move of 0.32%, and CAD/EUR was listed at 0.62 with an unchanged move of 0.04%.


Other market signals

US Dollar Index futures were reported down 0.27% at 99.39. The session data and price moves underscore a day in which energy prices strengthened while a majority of Canadian-listed equities finished lower.

Risks

  • Rising implied volatility - S&P/TSX 60 VIX increased 2.79% to 13.61 - which could indicate heightened near-term market uncertainty, affecting all sectors.
  • Downward pressure in Materials, Real Estate and IT could weigh on equity performance in those sectors if the trend persists.
  • Divergent commodity moves - stronger oil and weaker gold - may lead to sector rotation that impacts energy and metals-related names.

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