Stock Markets May 25, 2026 04:30 PM

Canadian equities close higher as S&P/TSX Composite reaches record high

Materials, technology and consumer discretionary stocks lead gains while oil prices slide and gold rises

By Marcus Reed HBM TVE BTE

Canada's main stock index closed higher on Monday, with the S&P/TSX Composite up 1.04% to a fresh record. Sector strength in Materials, Information Technology and Consumer Discretionary supported the advance. Market breadth was positive, volatility eased to a three-month low, gold futures rose and crude oil futures fell sharply.

Canadian equities close higher as S&P/TSX Composite reaches record high
HBM TVE BTE

Key Points

  • S&P/TSX Composite rose 1.04% to a new all-time high at the close in Toronto.
  • Materials, Information Technology and Consumer Discretionary led sector gains while energy names underperformed.
  • Market breadth was positive with 703 advancing issues versus 254 decliners, and the S&P/TSX 60 VIX fell to 14.06, a three-month low.

Canadian equity markets finished the session higher on Monday, with the S&P/TSX Composite advancing 1.04% to record a new all-time high at the close in Toronto. Gains were driven by strength in the Materials, Information Technology and Consumer Discretionary sectors.


Market breadth favored the advance: 703 stocks rose on the Toronto Stock Exchange, 254 declined and 72 finished unchanged. The S&P/TSX 60 VIX, which tracks implied volatility for options on the S&P/TSX Composite, declined 3.17% to 14.06, marking a new three-month low.


Top performers

  • HudBay Minerals Inc (TSX:HBM) led gains on the session, climbing 8.94% or 3.01 points to close at 36.69.
  • First Quantum Minerals Ltd. (TSX:FM) rose 8.36% or 3.07 points to finish at 39.80.
  • Capstone Mining Corp (TSX:CS) added 7.44% or 0.98 points to end the day at 14.15.

Heaviest decliners

  • Tamarack Valley Energy Ltd (TSX:TVE) was the weakest name noted, down 5.24% or 0.67 points to 12.11 at the close.
  • Baytex Energy Corp (TSX:BTE) declined 5.20% or 0.37 points to 6.75.
  • Athabasca Oil Corp (TSX:ATH) fell 5.18% or 0.62 points to close at 11.34.

Commodities and currencies

Gold Futures for August delivery finished the session higher, up 1.07% or 48.70 to $4,605.10 a troy ounce. In energy markets, crude oil for July delivery fell 6.51% or 6.29 to $90.31 a barrel, while the August Brent contract declined 6.55% or 6.56 to trade at $93.65 a barrel.

On the currency front, CAD/USD was effectively unchanged, moving 0.14% to 0.72, while CAD/EUR was unchanged at 0.21% to 0.62. The US Dollar Index Futures was down 0.27% at 98.92.


Takeaway

Monday's session closed with broad participation to the upside in Canada, led by materials-related and mining stocks among the biggest single-stock contributors. At the same time, energy names saw notable weakness, in line with a sharp pullback in oil futures. Implied volatility as measured by the S&P/TSX 60 VIX moved lower to its recent three-month trough.

Risks

  • Notable declines among energy producers - Tamarack Valley Energy Ltd, Baytex Energy Corp and Athabasca Oil Corp - reflect downside pressure in the energy sector amid a sharp drop in crude oil futures.
  • A sharp move lower in crude oil prices could present uncertainty for energy-sector earnings and related stocks, as shown by double-digit percentage moves for several energy names on the day.
  • Although implied volatility declined to a three-month low, an abrupt reversal in market conditions could raise volatility again and affect sectors sensitive to commodity price swings.

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