The selloff in the Canadian stock market intensified on Tuesday, as investors remain worried about higher-than-expected domestic inflation and weaker retail sales numbers. The S&P/TSX Composite Index tanked by 263 points, or 1.3%, yesterday to settle at 20,253, posting its biggest single-day decline since mid-December 2022.
While all key stock market sectors ended the session in red territory, shares of healthcare, technology, and consumer cyclicals mainly led the market selloff.
Top TSX Composite movers and active stocks
Nexgen Energy, Ballard Power, Tilray Brands, Energy Fuels, and Bausch Health were the worst-performing TSX stocks on February 22, as they dived by more than 6% each.
Shares of Air Canada (TSX:AC) continued to slide for a second consecutive session after announcing wider-than-expected December quarter losses last week. On Tuesday, AC stock fell by 4.2% to $20.32 per share.
Despite a solid 71.4% year-over-year growth in its quarterly revenue, the largest Canadian passenger airline reported an adjusted net loss of $217 million compared to analysts’ estimate of a $61.8 million loss. Besides inflationary pressures, higher employee benefits and disruption costs drove Air Canada’s adjusted cost per available seat mile for 2021 up by 19% compared to the pre-pandemic year 2019. After losing more than 12% of its value in the last couple of sessions, AC stock now trades with 4.8% year-to-date gains.
Parex Resources was the only stock on the Toronto Stock Exchange that managed to rise more than 2% yesterday.
Based on their daily trade volume, Suncor Energy, Manulife Financial, Enbridge, and Canadian Natural Resources were the most active stocks on the exchange.
TSX today
The main TSX index is likely to extend yesterday’s losses at the open today as commodity prices across the board, especially crude oil, natural gas, and copper, were trading on a bearish note early Wednesday morning. In addition, investors’ worries that hot inflation could encourage central banks in Canada and the United States to keep raising interest rates in the near term could pressure the market further.
While no key domestic economic releases are due, Canadian investors may want to pay attention to the Federal Open Market Committee’s meeting minutes this afternoon, which could add to the market volatility.
On the corporate events front, several TSX-listed companies, including CCL Industries, B2Gold, Stantec, Crombie REIT, Stelco Holdings, Alamos Gold, Whitecap Resources, Pan American Silver, Torex Gold, Lundin Mining, SSR Mining, Gildan Activewear, and Wesdome Gold are expected to announce their latest quarterly results on February 22.
Market movers on the TSX today
