Canadian Stock Market Recovers After Initial Decline

The Canadian stock market rebounded on Monday after opening with a negative gap and extending early losses. Gains in consumer staples, energy, communications, and consumer discretionary sectors helped push the market into positive territory.

Market Performance Amid Economic Concerns

The session began on a weak note due to fears that U.S. President Donald Trump's economic policies and potential retaliatory actions from affected nations could drive inflation, keep interest rates high, and slow global economic growth. Despite these concerns, the market managed a turnaround by midday.

The S&P/TSX Composite Index, which initially dropped to 24,534.35, shedding approximately 225 points, climbed back to 24,815.62, gaining 56.47 points (0.23%) by noon.

Notable Gainers and Decliners

Among the top performers, North West Company surged by more than 5%, while Restaurant Brands International saw a 4% increase. Precision Drilling Corporation also advanced, gaining 3.25%.

Other companies showing significant upward momentum included Molson Coors Canada, Empire Company, Cogeco, Loblaw Companies, Metro Inc., George Weston, Intact Financial Corporation, Cogeco Communications, RB Global, Imperial Oil, Great-West Lifeco, and ATCO, each rising between 2% and 3%.

Conversely, SSR Mining Inc. suffered a steep decline of nearly 10%, while Ivanhoe Mines, Dye & Durham, Celestica, Canada Goose Holdings, Teck Resources, E-L Financial, Chorus Aviation, First Quantum Minerals, Shopify Inc., AutoCanada, and BCE Inc. dropped 2% to 5%. BlackBerry, Lightspeed Commerce, and Descartes Systems Group also faced significant losses.

Corporate Announcements

Westport Fuel Systems Inc. shares fell over 3% after the company revealed it had entered a binding agreement to sell its stake in Westport Fuel Systems Italia S.r.l., including its Light-Duty segment, for a base purchase price of $73.1 million.

Despite early volatility, the Canadian market showed resilience, with key sectors driving a midday recovery. Investors remain cautious amid economic policy concerns but continue to find opportunities in select industries.