The Canadian market closed on a weak note Monday, marking its third consecutive day of losses. This downward trend was driven by uncertainty surrounding U.S. interest rate prospects and a decline in metal prices, which negatively impacted market sentiment.
The benchmark S&P/TSX Composite Index, which initially dropped to 21,466.60 within the first hour—shedding over 160 points—gradually recovered throughout the day. The index ultimately closed at 21,587.88, a decrease of 51.22 points or 0.24% from the previous session, recording its lowest close since March 5.
Notable declines were seen in Boyd Group Services (BYD.TO), which fell by 3.6%, and in Pembina Pipeline Corporation (PPL.TO), CCL Industries (CCL.A.TO), goeasy (GSY.TO), Shopify Inc. (SHOP.TO), and West Fraser Timber (WFG.TO), all of which closed lower by 1% to 2.6%.
Other significant losers included Atco Ltd. (ACO.X.TO), Capital Power Corp (CPX.TO), Telus Corp (T.TO), Cogeco Communications (CCA.TO), First Quantum Minerals (FM.TO), and MAG Silver Corp (MAG.TO).
Conversely, several companies posted gains: Cargojet (CJT.TO), BRP Inc. (DOO.TO), Waste Connections (WCN.TO), Bombardier Inc. (BBD.B.TO), Celestica Inc. (CLS.TO), EQB Inc. (EQB.TO), and Canadian Pacific Kansas City (CP.TO) all advanced by 1.5% to 3%.
Primo Water (PRMW.TO) climbed 2% following the announcement of a merger with an affiliate of BlueTriton Brands. The all-stock transaction aims to create a North American healthy hydration company, with Primo Water shareholders and incentive equity holders collectively owning 43% of the newly combined entity, while BlueTriton shareholders will hold the remaining 57%.
On the economic front, data from the Canada Mortgage and Housing Corporation revealed that housing starts in Canada rose to 264,500 units in May, up from 241,100 units in April.
