TSX Dips as Energy Stocks Slide and Economic Concerns Persist

The Canadian stock market opened the week on a cautious note, with the S&P/TSX Composite Index retreating slightly after a strong rally on Friday. The index fell 0.18%, or 62.83 points, to close at 35,439.82. Energy stocks led the decline as oil prices eased, offsetting gains in technology and materials sectors.

The decline came despite a major deal in the energy sector: Cenovus Energy announced a C$5.7 billion acquisition of Athabasca Oil. The transaction, which includes cash and stock, will expand Cenovus’s production by 45,000 barrels of oil equivalent per day and strengthen its position in Alberta’s oil sands. However, investors reacted with caution, pulling back Cenovus shares as the company takes on new financial commitments.

Meanwhile, economic concerns weighed on the market. Canada’s services sector contracted for a fourth straight month, with the S&P Global Canada Services Business Activity Index improving to 48.3 but remaining below the 50 mark that signals expansion. This data added to investor uncertainty about the domestic economic outlook.

Among the top gainers, mining and materials stocks performed well, with Trekor Metals, Ero Copper, Teck Resources, and Lundin Mining all seeing gains. Canadian Pacific Kansas City also stood out after reporting record grain transportation volumes. Conversely, energy and rate-sensitive stocks like Telus Corporation and Enbridge faced declines.