Canada Stocks: TSX's daily winning streak ends as MDA Space tumbles

MDA Space

08/09/2025 21:29

TSX ends down  0.1% at 29,027.73

Industrials fall 1.1%

Shares of MDA Space drop 25%

Materials group adds 1.3% a gold rises

Updates at market close

By Fergal Smith

TORONTO, Sept 8 (Reuters) - Canada's main stock index ended lower on Monday as the industrial and consumer staples sectors lost ground, but the move was modest ahead of potential U.S. and Canadian interest rate cuts this month.

The S&P/TSX composite index .GSPTSE ended down 22.9 points, or 0.1%, at 29,027.73. It follows eight-straight days of gains that lifted the market to a record closing high on Friday.

"September always tends to be a challenging month in terms of seasonal volatility and the biggest factor this month is very likely to be interest rate cuts," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth. "The markets are anticipating rate cuts on both sides of the border."

Expectations that the Federal Reserve and the Bank of Canada will resume their easing campaigns were given a boost on Friday by disappointing U.S. and Canadian jobs data. Investors see a roughly 90% chance the BoC will lower its benchmark rate from its current setting of 2.75% on September 17.

Industrials .GSPTTIN fell 1.1%, weighed by declines for the shares of railroad companies and MDA Space Ltd MDA.TO. MDA was down 25% after the space technology firm said it received a termination notice from EchoStar for a satellite constellation contract.

Consumer staples .GSPTTCS also lost 1.1% but the materials group .GSPTTMT, which includes metal mining shares, was up 1.3% as the price of gold XAU= extended its record-setting run.

"For a while, there was a big disconnect between the price of gold, which kept climbing to record highs and the price of gold stocks, but lately we've seen that disconnect narrow a little bit," Picardo said.

The bidding war for Canadian oil sands producer MEG Energy MEG.TO heated up as Strathcona Resources SCR.TO raised its offer, seeking to outbid larger rival Cenovus Energy CVE.TO.

Shares of MEG rose 2.4%, Strathcona was down 0.3% and Cenovus ended nearly unchanged.

 (Reporting by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed and Alistair Bell)

 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))