The selloff in the Canadian stock market accelerated Friday after California financial regulator took possession of the American tech-focused lender Silicon Valley Bank due to liquidity and insolvency concerns. As uncertainties about the implication of this development unnerved global investors, the S&P/TSX Composite Index plunged by 312 points, or 1.6%, to 19,775 — closing below the 20,000 level for the first time since January 10.
While all key stock market sectors witnessed heavy losses, the selloff was primarily led by healthcare, real estate, and bank stocks. With this, the main TSX index ended the week with 3.9% losses, marking its worst weekly performance since September 2022.
Top TSX Composite movers and active stocks
Shares of Enghouse Systems (TSX:ENGH) crashed by nearly 25% in the last session to $32.77 per share after its quarterly financial results disappointed investors. In the first quarter of its fiscal year 2023 (ended in January), the Markham-headquartered enterprise software company’s total revenue declined 4.2% year over year to $106.4 million.
Enghouse’s adjusted quarterly earnings fell 21% from a year ago to $0.31 per share due mainly to the shift to the cloud, inflationary pressures, and the high-interest rate environment. Notably, its earnings were also lower than the Street analysts’ estimate of $0.37 per share. On a year-to-date basis, ENGH stock is now down 9%.
Ballard Power Systems, Denison Mines, Labrador Iron Ore Royalty, and Onex were also among the bottom performers on the Toronto Stock Exchange on March 10, as they dived by at least 5% each.
On the positive side, Silvercrest Metals, Wheaton Precious Metals, and IAMGOLD were the top-performing TSX stocks, as they gained more than 3% each.
Based on their daily trade volume, Suncor Energy, Canadian Natural Resources, Manulife Financial, and Barrick Gold were the most active Canadian stocks for the day.
TSX today
On Sunday, the American financial regulators announced actions to protect Silicon Valley Bank’s depositors. In a joint statement, the U.S. Treasury Department, the Federal Deposit Insurance Corporation, and the Federal Reserve said that “depositors will have access to all of their money starting Monday, March 13” and “no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.” These steps could be the primary reason why U.S. stock futures recovered in early Monday trading.
Commodity prices across the board were trading on a bullish note early Monday morning, which could help mining and energy TSX to open higher today. However, new developments related to the Silicon Valley Bank will likely keep the market volatile, especially bank stocks.
On the corporate events front, the Vancouver-based mining company Ivanhoe Mines is expected to release its latest quarterly results on March 13. Bay Street analysts expect it to report US$111.2 million in quarterly earnings.
Market movers on the TSX today
