Canadian stocks tumbled last week to post 2022’s second-biggest weekly losses after the U.S. Federal Reserve raised interest rates by 75 basis points for the third consecutive time — reigniting fears of a looming recession. The S&P/TSX Composite Index fell by 522 points, or 2.7%, to settle at 18,481, not far from this year’s lowest closing level of 18,329. While all key sectors on the exchange ended the day in red, shares of energy and metal mining companies led the market selloff due to declining commodity prices.
Top TSX movers and active stocks
Bombardier, Precision Drilling, IAMGOLD, MEG Energy, and Headwater Exploration were the worst-performing stocks on the exchange, as they fell by more than 10% each September 23.
On the positive side, shares of Dye & Durham (TSX:DND) defied the bear market gravity by rising 5% in the last session to $12.66 per share. This rally in DND stock came after the Australia-based Link Administration Holdings “terminated discussions with respect to Dye & Durham’s proposed acquisition of Link Group.” While the Canadian tech firm’s chief executive officer Matthew Proud expressed his disappointment with this outcome, he said the company would continue to focus on high-quality acquisitions in the future. Year to date, Dye & Durham stock is down 71.8%.
Based on their daily trade volume, TC Energy, Suncor Energy, Barrick Gold, and Canadian Natural Resources were the most active TSX Composite components on Friday. Nearly 12 million shares of TC Energy changed hands on the exchange in the last session.
Early Monday morning, metals prices — especially gold and copper — bounced back from their last week’s lows. However, crude prices continued to trade on a bearish note. Given these mixed signals, I expect the commodity-heavy TSX Composite benchmark to open on a flat note today.
While no key economic releases are due today, Canadian investors may want to remain cautious ahead of tomorrow’s important consumer confidence and new home sales data from the U.S. market. On the corporate events front, Dye & Durham is set to release its June quarter results on September 26. Analysts expect the tech company’s quarterly earnings to be around $0.17 per share.