Canadian stocks continued to trade on a weak note for the third consecutive session despite a minor recovery in commodity prices, as significantly weaker-than-expected U.S. non-farm employment figures made investors worried about the near-term economic outlook. As a result, the S&P/TSX Composite Index slipped by 52 points, or 0.2%, to settle at 22,988.
Even though mining and utility stocks showed strength, heavy losses in other key market sectors, including consumer cyclicals and industrials, weighed on the TSX benchmark, extending its week-to-date losses to 1.5%.
Top TSX Composite movers and active stocks
$First Majestic Silver Corp (AG.CA)$ dived by more than 8% to $6.56 per share, making it the worst-performing TSX stock for the day. This selloff in AG stock came after the Vancouver-based precious metals miner revealed its intentions to acquire Gatos Silver in a deal valued at around $970 million.
According to their merger agreement, Gatos shareholders will receive 2.550 shares of First Majestic for each Gatos share, reflecting a 16% premium. First Majestic expects this deal, which is likely to close in early 2025, to improve its production profile and free cash flow by consolidating three major silver-producing districts in Mexico. On a year-to-date basis, First Majestic stock is now down 19.3%.
Canada Goose, BRP, and Descartes Systems were also among the day's bottom performers on the Toronto Stock Exchange, with each falling by at least 3.5%.
On the flip side, shares of $Primo Water Corp (PRMW.CA)$ rallied by nearly 9% to $32.21 per share after it, along with BlueTriton Brands, jointly announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which was the key condition in their all-stock merger. After getting all necessary regulatory and shareholder approvals, the transaction is now expected to close by the end of 2024.
North West Company, IAMGOLD, and OceanaGold were also among the top-performing TSX stocks yesterday as they climbed by at least 3.9% each.
According to the exchange's daily trade volume data, Suncor Energy, Canadian Natural Resources, Cenovus Energy, Osisko Mining, and Enbridge stood out as the most active stocks.
TSX today
Commodity prices were largely mixed early Friday morning, pointing to a flat opening for the resource-heavy main TSX index today.
Besides domestic unemployment rate and employment change data, Canadian investors will closely monitor the important jobs report from the United States this morning, which could give further direction to stocks.
On the corporate events side, BRP will release its latest quarterly earnings report on September 6. Bay Street analysts expect the powersports vehicles and marine products maker to post earnings of $0.45 per share for the July quarter, with $1.88 billion in revenue.
