The ongoing market correction intensified on Monday, as the TSX Composite Index dived by 134 points, or 0.6%, to 21,421. Notably, it was the fourth consecutive session that Canadian stocks fell. Technology, healthcare, consumer non-cyclicals, and industrials were among the worst-performing sectors on the TSX. A continued drop in metals prices — including gold, silver, and copper — pressurized mining stocks on the benchmark, even as an intraday recovery in oil prices took energy stocks slightly higher.
Top TSX movers and active stocks
Despite the broader market weakness, Turquoise Hill Resources stock rose by about 10% yesterday after BMO analysts recently raised their target price on its stock. Capstone Mining, Canfor, Teck Resources, and Crescent Point Energy were also among the top gainers on the TSX, as they rose by at least 4% each.
In contrast, tech stocks such as Docebo, Shopify (TSX:SHOP)(NYSE:SHOP), and Kinaxis were among the worst-performing stocks on the Canadian market benchmark. While Docebo stock slipped by 8% in the last session, Shopify and Kinaxis lost nearly 5% each.
Manulife Financial, Suncor Energy, Canadian Natural Resources, and Enbridge were the most heavily traded Canadian stocks by volume yesterday.
TSX today
TSX may continue to trend downward Tuesday, as the ongoing inflation concerns are likely to weigh on the equities market — especially on the tech sector. Also, weakness in the commodities market could pressurize energy and mining stocks in today’s trading session. With the lack of any major domestic economic releases today, Canadian investors could keep an eye on the preliminary U.S. manufacturing PMI numbers, which are due this morning.
In my opinion, the ongoing market correction could be an opportunity for long-term investors to buy some fundamentally strong stocks for cheap. For example, Shopify stock is sliding down — days after reaching its record high levels. Its consistently strong revenue and earnings growth, along with its stellar future growth prospects, make SHOP stock worth buying on the dip for the long term. Currently, the stock is trading with 41% year-to-date gains.
