The Canadian stock market selloff accelerated Tuesday, as commodity prices, especially energy products and precious metals, witnessed heavy losses due to growing concerns about a global economic slowdown. The S&P/TSX Composite Index tanked by 180 points, or 0.9%, for the day to 19,754, posting its worst daily performance this month to reach its lowest closing level since June 1.
Besides big losses in commodity-linked TSX stocks, other key market sectors like real estate, banking, and technology also fell sharply to add pessimism.
Top TSX Composite movers and active stocks
IAMGOLD, Canopy Growth, MAG Silver, and Endeavour Silver were the worst-performing TSX stocks yesterday, as they dived by at least 5.4% each.
Shares of Hudbay Minerals (TSX: HBM) also plunged by 5% to $6.59 per share, a day after announcing its intentions to buy all issued and outstanding common shares of the Toronto-based mining firm Rockcliff Metals. Hudbay’s management is hopeful that this transaction will help it extend mine life at its Snow Lake operations by consolidating its ownership in the Talbot copper-gold deposit and more than tripling its prospective land package in the Snow Lake region.
The selloff in HBM stock, however, suggests that the news about this strategic acquisition deal failed to impress investors. Year to date, the stock is now down 3.7%.
On the positive side, Celestica and Jamieson Wellness were the top performers on the Toronto Stock Exchange on June 20, as they rose at least 2% each.
Based on their daily trade volume, Canadian Imperial Bank of Commerce, Suncor Energy, TD Bank, and Baytex Energy stood out as the most active stocks on the exchange.
TSX today
Most commodity prices, especially precious metals, extended losses early Wednesday morning, which could keep the resource-heavy main TSX index under pressure at the open today. Apart from the important domestic retail sales numbers, Canadian investors may want to closely monitor the U.S. Federal Reserve chair Jerome Powell’s congressional testimony on June 21.
On the corporate events side, the TSX and NASDAQ-listed Algoma Steel is set to announce its latest quarterly results after the market closing bell today. Street analysts expect the company to report a quarterly net loss of $3 million with $670 million in revenue.
Market movers on the TSX today
