Stock Markets August 26, 2026 04:30 PM

Toronto market slips as materials, consumer discretionary and REITs weigh on index

S&P/TSX Composite ends lower, energy and metals futures decline while volatility edges higher

By Priya Menon
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Canada's S&P/TSX Composite closed lower on Wednesday, pressured by losses in the Materials, Consumer Discretionary and REITs sectors. The benchmark fell 0.39% as decliners outpaced advancers on the Toronto Stock Exchange. Notable individual movers included gains for TransAlta, Aritzia and Stantec, while Southern Cross Gold Consolidated, Ngex Minerals and NovaGold were among the largest decliners. Commodity futures for gold and crude moved lower, and the S&P/TSX 60 VIX rose on the session.

Toronto market slips as materials, consumer discretionary and REITs weigh on index
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Key Points

  • S&P/TSX Composite closed down 0.39% as Materials, Consumer Discretionary and REITs led losses.
  • Top gainers were TransAlta (TA), Aritzia (ATZ) and Stantec (STN); top decliners included Southern Cross Gold (SXGC), Ngex Minerals (NGEX) and NovaGold (NG).
  • Gold and crude futures fell while the S&P/TSX 60 VIX rose, indicating a modest increase in implied volatility.

Canada's equity market ended the trading day in negative territory on Wednesday, with the S&P/TSX Composite closing down 0.39% in Toronto. Losses in the Materials, Consumer Discretionary and REITs sectors contributed to the decline.

At the close, TransAlta Corp (TSX:TA) was the session's top performer, advancing 3.66% or 0.62 points to finish at 17.55. Aritzia Inc (TSX:ATZ) also posted strong gains, adding 3.50% or 4.58 points to close at 135.51. Stantec Inc (TSX:STN) rose 3.04% or 3.09 points to 104.69 in late trade.

On the downside, Southern Cross Gold Consolidated Ltd (TSX:SXGC) led decliners, slipping 4.78% or 0.62 points to end the day at 12.36. Ngex Minerals Ltd (TSX:NGEX) fell 4.73% or 1.43 points to 28.81, while NovaGold Resources Inc (TSX:NG) dropped 4.45% or 0.60 points to 12.89.

Market breadth was negative: falling issues outnumbered advancing ones on the Toronto Stock Exchange by 542 to 420, with 74 stocks finishing unchanged.

Volatility on Canadian large caps ticked higher. The S&P/TSX 60 VIX, which measures implied volatility in options on the S&P/TSX Composite, rose 1.78% to 13.13.

Commodities showed weakness on the session. Gold Futures for December delivery were down 1.05% or 49.29 to $4,645.21 a troy ounce. In energy markets, crude oil for October delivery fell 0.68% or 0.56 to $81.80 a barrel, while the November Brent contract declined 0.93% or 0.81 to trade at $86.46 a barrel.

In foreign exchange, CAD/USD was unchanged 0.27% to 0.72, while CAD/EUR was unchanged 0.05% to 0.62.

Elsewhere on financial measures, the US Dollar Index Futures was up 0.23% at 99.07.


This session's data highlights a modest pullback in Canadian equities, accompanied by softer commodity prices and a slight uptick in market volatility. Individual stock performance was mixed, with several names posting notable moves in both directions.

Risks

  • Sector concentration of losses in Materials, Consumer Discretionary and REITs could pressure related stocks and portfolios.
  • Declines in gold and crude futures may affect commodity-linked equities and earnings in materials and energy sectors.
  • Rising implied volatility as reflected in the S&P/TSX 60 VIX could signal greater near-term uncertainty for large-cap Canadian equities.

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