Stock Markets March 5, 2026

Toronto stocks slip as materials, healthcare and financials drag S&P/TSX down 0.98%

Methanex posts gains while miners lead declines; volatility and oil prices rise alongside mixed commodity moves

By Priya Menon MX MFI ERO
Toronto stocks slip as materials, healthcare and financials drag S&P/TSX down 0.98%
MX MFI ERO

Canadian equities closed lower Thursday as losses in the Materials, Healthcare and Financials sectors pushed the S&P/TSX Composite down 0.98% in Toronto trading. A small group of gainers including Methanex and Maple Leaf Foods contrasted with sharp declines among several miners. Market breadth favored decliners, the S&P/TSX 60 VIX rose to a one-month high, and commodity prices moved unevenly with crude oil higher and gold lower.

Key Points

  • S&P/TSX Composite closed down 0.98% as Materials, Healthcare and Financials weighed on the market.
  • Methanex led gainers, reaching five-year highs, while Capstone Mining, Ero Copper and First Quantum were among the largest decliners.
  • Volatility on the S&P/TSX rose, with the S&P/TSX 60 VIX up 10.88% to 19.05; crude oil rallied while gold fell.

Canada's main stock index ended the trading day in negative territory Thursday, with the S&P/TSX Composite finishing down 0.98% at the close in Toronto. Losses were concentrated in the Materials, Healthcare and Financials sectors, which collectively pressured the market lower.

Among individual stocks, Methanex Corporation (TSX:MX) led the winners, jumping 7.08% or 5.16 points to close at 78.00, a move that took the shares to five-year highs. Strathcona Resources Ltd (TSX:SCR) also posted gains, rising 5.65% or 1.75 points to finish at 32.73. Maple Leaf Foods Inc. (TSX:MFI) was up 5.59% or 1.50 points to close the session at 28.31.

In contrast, several miners were among the session's weakest performers. Capstone Mining Corp (TSX:CS) fell 9.65% or 1.23 points to end at 11.52. Ero Copper Corp (TSX:ERO) dropped 8.96% or 3.88 points to finish at 39.40, and First Quantum Minerals Ltd. (TSX:FM) declined 8.36% or 3.16 points to close at 34.62.

Market breadth showed more stocks falling than rising on the Toronto Stock Exchange, with 571 issues down versus 388 advancing and 80 ending unchanged.

Volatility on the Toronto benchmark rose notably. The S&P/TSX 60 VIX, which measures implied volatility for options tied to the S&P/TSX Composite, climbed 10.88% to 19.05, marking a new one-month high for the gauge.

Commodity markets were mixed during the session. Gold futures for April delivery lost 0.86% or 44.21 to trade at 5,090.49 a troy ounce. By contrast, crude oil for April delivery advanced 5.81% or 4.34 to reach 79.00 a barrel, while the May Brent contract gained 2.97% or 2.42 to trade at 83.82 a barrel.

Currency and U.S. dollar indicators were relatively steady. The Canadian dollar was little changed versus major currencies, with CAD/USD showing a 0.17% move to 0.73 and CAD/EUR shifting 0.07% to 0.63. The US Dollar Index Futures was up 0.31% at 99.04.

The session highlighted a divergence between pockets of strength in select industrial and consumer-oriented names and weakness among mining stocks, accompanied by a rise in implied volatility and uneven commodity price action.

Risks

  • Rising implied volatility - the S&P/TSX 60 VIX increased to 19.05, signaling higher option-implied uncertainty which can affect Financials and broader market sentiment.
  • Commodity price swings - the sharp move higher in crude oil and the decline in gold may create uneven effects across Materials and Energy sector revenues and costs.
  • Concentrated sector weakness - notable declines in the Materials sector, along with pressures in Healthcare and Financials, suggest sector-specific headwinds that could limit broader index gains.

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