TSX Today: Why TSX Stocks Could Fall on Friday, January 28

The ongoing tech sector selloff coupled with a sharp decline in metals prices could pressure TSX stocks today.

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TSX Today

Canadian equities turned negative again on Thursday after trading on a mixed note in a previous couple of sessions. The S&P/TSX Composite Index settled at 20,544 with a 52-point, or 0.3%, drop. Despite the U.S. central bank’s decision to keep the key interest rates unchanged, most tech stocks continued to slide down across North America. Weaker commodity prices amid the appreciating U.S. dollar value also pressured shares on the TSX in the last session.

Top TSX movers and active stocks

The cryptocurrency mining company Hut 8 Mining’s (TSX:HUT)(NASDAQ:HUT) shares dived by more than 10% to $6.52 per share. A consistent drop in key cryptocurrencies like Bitcoin and Ethereum is continuing to hurt crypto stocks on the TSX lately. While Bitcoin value has tanked by nearly 24% in the last month, Ethereum has seen more than 37% value erosion during the same period, leading to a big selloff in crypto stocks like Hut 8 Mining. In January so far, HUT stock has seen 34.3% value erosion.

The shares of Endeavour Silver, Silvercrest Metals, Lightspeed Commerce, and Aurora Cannabis were among the worst-performing TSX stocks, as they fell by at least 6% each yesterday.

On the positive side, Stelco Holdings surged by 8.1% on January 27 after the company provided an update related to its share-repurchase program.

Methanex and Celestica were also among the top-performing Canadian stocks, as they rose by at least 6% each.

Based on their daily trade volume, Suncor Energy, Royal Bank of Canada, and Baytex Energy were the most active TSX Composite components.

TSX today

While the crude oil prices are trading on a mixed note early this morning, most metals, including gold, silver, and copper, are staging a massive selloff. This could pull the TSX index downward at the open today, with a sharp decline in metals and mining stocks.

In addition, the ongoing meltdown in tech stocks could also pressure the main Canadian market index on Friday.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends Lightspeed Commerce and METHANEX CORP. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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