Toronto Stocks: TSX, Energy and Banks Daily — 2026-09-26
A choppy week for Canadian equities: the S&P/TSX Composite snapped a two-day slide and closed higher by 0.26% on September 25 after opening flat Friday as easing oil prices met elevated bond yields. Energy shares led the tape — Cenovus topped the trending list as oil stocks outpaced banks and telecoms — while BMO slipped nearly 2% and tariff escalation with Washington kept trade-sensitive names on edge.
Toronto Stocks: TSX, Energy and Banks Daily — 2026-09-26
Top developments
TSX ends higher after snapping two-day slide
The S&P/TSX Composite closed 0.26% higher on September 25, with Snowline Gold among the session's best performers (+5.68% to 17.50). The gain came as easing oil prices lifted stocks after a turbulent week dominated by a bond rout.
Earlier in the week, the index opened flat Friday at 35,713.26 as investors weighed "easing oil prices and small gains in precious metals against elevated bond yields" — and French-language outlet Zonebourse described the same equilibrium, noting the tug-of-war between falling crude, soft energy shares and high yields.
The close matters for the loonie and energy weight in the C Prix: a flat open followed by a late-day rebound suggests bond yields, not oil, are now the marginal driver of intraday direction — a headwind for rate-sensitive banks.
Energy outpaces banks and telecoms; Cenovus leads
Cenovus led TSX trending stocks as energy shares extended gains and outpaced banks and telecoms through the week. Oil stocks drove TSX trading on September 24 even as the broader index fell — down more than 150 points in late-morning trade despite climbing oil prices, with weakness concentrated in consumer cyclicals.
The Globe and Mail's Number Cruncher (September 21) examined which TSX energy stocks are "best positioned for tariffs, war and rising oil prices," a reminder that investors see the sector as a tariff hedge.
Big Six banks: BMO slips nearly 2% on profit-taking
BMO opened at CAD 244.11 on September 24, touched CAD 245.44 and fell to CAD 240.39, down 1.98% in Toronto trading.
Banks broadly underperformed energy this week despite a strong quarterly backdrop: the Big Six swept Q3 estimates on stabilizing net interest margins, rising capital markets revenue and steady credit, with all six reporting Q4 results in early December as the next catalyst.
With the Bank of Canada holding at 2.25% since its September 2 decision (a seventh consecutive pause), banks remain squeezed between a stable rate floor and elevated bond yields that lift funding costs and dull NIM relief.
Tariff escalation: US import bans loom September 29
The US has escalated Section 338 actions against Canada, moving from 50% tariffs on certain dairy, alcoholic beverage and motor vehicle imports to outright import bans on those goods effective September 29, 2026, with no USMCA exemption. This lands days after Canada's counter-tariff package — 15%, 25% and 50% duties on US products effective September 8 — took hold.
The tariffs are already reshaping demand: the US share of new vehicles sold in Canada has shrunk from 35.4% to 28.4% in one year, according to Fortune. Autos, dairy and spirits exposure names should watch the September 29 date closely.
Local view
La Presse ran a September 24 column arguing the TSX has developed its own equivalents of the "Magnificent 7" — with mining stocks increasingly the market's standouts, a notable framing given energy's leadership this week and banks' relative lag.
La Presse also flagged on September 18 that the end of the Bank of Canada's rate status quo is "increasingly probable," pointing to a possible end of the central bank's near-year-long pause at 2.25% as the economy digests a series of shocks — a key sensitivity for bank NIMs and the loonie into the next scheduled announcement.
Les Affaires published its September 24 winners-and-losers roundup of the Toronto close.
Context & numbers
| Metric | Figure | Detail |
|---|---|---|
| TSX weekly open (Fri) | 35,713.26 | Index opened flat Friday, ahead 6.9 points |
| TSX Sep 25 close | +0.26% | Snowline Gold best performer, +5.68% |
| BMO price | CAD 240.39 | −1.98% on Sep 24 session |
| BoC policy rate | 2.25% | Held Sep 2, seventh consecutive pause |
| US vehicle share in Canada | 28.4% | Down from 35.4% in one year |
| Canadian counter-tariffs | 15/25/50% | Effective September 8, 2026 |
On the radar
- September 29: US Section 338 import bans on certain Canadian dairy, alcoholic beverages and motor vehicles take effect — the near-term tariff catalyst
- Early December: Big Six Q4 earnings season, flagged as the next major catalyst for the banking group
- BoC rate path: Increasing local speculation that the 2.25% pause may end soon; watch upcoming inflation and retail data for the trigger
- Mining watch: Gold and mining names keep outperforming — La Presse argues they're emerging as the TSX's own market leaders
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