The Canadian stock market experienced a slight decline on Tuesday, driven by renewed trade war concerns following threats from U.S. President-elect Donald Trump. Trump announced plans to impose a 25% tariff on imports from Canada, Mexico, and China. Despite this, the market managed to limit its losses, thanks to robust buying activity in technology, consumer staples, financials, and materials sectors. On the downside, energy, real estate, consumer discretionary, and industrials performed notably poorly.
The S&P/TSX Composite Index, which initially fell to 25,288.46, ended the day with a marginal loss of 5.21 points or 0.02%, closing at 25,405.14.
Among the significant decliners, Bombardier Inc (BBD.B.TO) plunged over 9%, while BRP Inc (DOO.TO), Linamar Corp (LNR.TO), Winpak (WPK.TO), ATS Corporation (ATS.TO), MEG Energy Corp (MEG.TO), and Magna International (MG.TO) each suffered losses between 4.7% and 6%.
Other companies including Topaz Energy (TPZ.TO), Precision Drilling Corporation (PD.TO), MDA Space (MDA.TO), Rogers Communications (RCI.A.TO), Canadian Pacific Kansas City (CP.TO), Ag Growth International (AFN.TO), Tourmaline Oil Corp (TOU.TO), Keyera Corp (KEY.TO), Cogeco Communications (CCA.TO), Imperial Oil (IMO.TO), and Suncor Energy (SU.TO) saw declines ranging from 2% to 4%.
Conversely, Dye & Durham (DND.TO) surged nearly 11.5% following the announcement that Matthew Proud will step down as Chief Executive Officer. Proud will remain in his role for about three months or until a successor is appointed.
Quebecor Inc (QBR.A.TO), Brookfield Asset Management (BAM.TO), Agnico Eagle Mines (AEM.TO), Wheaton Precious Metals (WPM.TO), Russel Metals (RUS.TO), Franco-Nevada Corporation (FNV.TO), Celestica Inc (CLS.TO), and Metro (MRU.TO) experienced losses between 2% and 4.5%.
Calian Group Ltd. (CGY.TO) reported an adjusted net profit of $11.5 million for the quarter ending September 30, 2024, a slight decrease from $12.7 million in the same period the previous year, resulting in a marginal decline in its stock price.
Alimentation Couche-Tard Inc. (ATD.TO) reported a 1.6% rise in its stock price after announcing net earnings of $708.8 million, or $0.75 per diluted share, for the second quarter of fiscal 2025, compared to $819.2 million, or $0.85 per diluted share, for the same quarter of fiscal 2024.
According to Statistics Canada, wholesale sales in Canada grew by 0.5% month-over-month in October 2024, following a 0.8% increase in September, based on preliminary estimates.
Following these economic developments, President-elect Donald Trump reiterated his stance on increasing tariffs, emphasizing in a statement on Truth Social that, effective January 20th, he intends to impose a 25% tariff on all imports from Canada and Mexico to curb illegal immigration and drug trafficking, specifically referencing fentanyl. Trump also indicated a 10% increase in tariffs on Chinese imports unless Beijing addresses the drug influx into the United States.
