The S&P/TSX Composite Index lost the gains made on Monday through Tuesday, ending the session at 21,930, down 155 points from Monday’s close. Still, the TSX is up 3% year to date, moved by the slight recovery in tech stocks. However, stock futures opened lower, as the United States markets feared an aggressive rate hike and more sanctions on Russia.
Top TSX movers and active stock
Suncor Energy fell by 1.2% yesterday, as the energy company announced it would be leaving the wind and solar business. This comes just as the United Nations stated this would be the best way to combat climate change. Despite being involved with renewable energy for the last 20 years, Suncor stock stated it would sell those assets to bring more “fit and focus” to the company.
Kinross Gold also fell 2.7% on Monday, as the company announced it would withdraw its assets in Russia due to the Ukraine invasion. That means 100% of its assets would be sold for US$680 million in cash, subject to Russian approval.
Russia continues to be the focus for many stocks, especially as the White House increases sanctions. President Biden stated the White House would ban new investment in Russia after seeing that Russian soldiers deliberately killed Ukrainian civilians. Further, Russia will be unable to pay for debt with cash from American financial institutions.
TSX today
Analysts came out with new reports on several large Canadian stocks on the TSX today. Citi analyst Stephen Trent lowered his earnings per share projection for Air Canada to a loss of $1.59 on Wednesday, with a 2023 profit of $1.90 per share, down from $2.48. However, he analyst feels there is still a “good long-term trajectory” in a post-pandemic world.
Meanwhile, Scotia Capital analyst Konark Gupta believes investors should be cautious when investing in Canadian railway for now. In a research note on Wednesday, he stated a “tough” winter, fuel inflation, and a labour dispute would all have an impact on earnings. However, there is some upside for both Canadian Pacific Railway and Canadian National Railway, as commodities continue to see strength from the ongoing Ukraine crisis. Further, the declining diesel price should also aid the industry.
