Canada's primary stock index managed a slight advance on Monday, January 19, 2026, finding support in the basic materials sector. The trading session occurred with major U.S. equity markets shuttered for the Martin Luther King Jr. Day holiday.
Materials Sector Provides Lift
The S&P/TSX composite index edged higher, with strength concentrated in companies tied to basic materials. This includes firms involved in the production of commodities like metals, minerals, and fertilizers. The sector's positive momentum helped offset potential drag from other areas, as investors digested domestic economic data in the absence of cues from Wall Street.
Keyera Hit by Operational Disruption
In individual corporate news, Canadian energy infrastructure company Keyera Corp. faced a significant operational setback. The company reported an outage at its Alberta Envirofuels facility, which produces ethanol. The disruption was caused by the failure of a key component within the plant's operations.
Such incidents can impact production volumes and potentially affect financial performance for the quarter. Keyera is a major player in midstream energy services, and its facilities are critical for processing and transporting natural gas liquids.
Market Context and Broader News
The quiet trading day on Bay Street contrasted with a busy news cycle across the country. In economic data, Statistics Canada recently reported that inflation rose to 2.4% in December, a move attributed in part to a rebound from temporary tax measures.
In the automotive sector, discussions continued around the potential for Chinese-made electric vehicles (EVs) entering the Canadian market, with some analysts suggesting companies like Tesla could be early beneficiaries of new trade dynamics.
Meanwhile, travel company Air Transat announced plans to launch a new loyalty program, aiming to better compete in the crowded travel rewards landscape.
Looking Ahead
Market participants will be watching for the return of U.S. traders on Tuesday for broader direction. The performance of commodity prices, particularly for metals and energy, will remain a key driver for the resource-heavy TSX. Additionally, investors will monitor how Keyera manages the resolution of its facility outage and any updates on the timeline for a return to normal operations.
