The selloff in Canadian equities accelerated on Tuesday, as much hotter-than-expected July consumer inflation numbers and continued big losses in commodity prices took a toll on investors’ sentiments. The S&P/TSX Composite Index plunged by 391 points, or 1.9%, yesterday to settle at 19,900.
In its latest report, Statistics Canada highlighted a base-year effect of gasoline prices, higher electricity prices, and rising mortgage interest costs as some of the key factors for driving the consumer price index upward last month.
With this, the main TSX benchmark not only closed at its lowest level in more than a month but also posted its worst single-day performance since October 7, 2022. While all major sectors ended the session deep in the red, metal mining, healthcare, energy, and bank stocks primarily led the market selloff.
Top TSX Composite movers and active stocks
Mining stocks Hudbay Minerals, Filo Corp, First Quantum Minerals, and Ivanhoe Mines were the worst-performing TSX stocks for the day as they tanked by at least 5.9% each due to weakening metals prices.
Premium Brands (TSX:PBH) stock was also among the bottom performers on the Toronto Stock Exchange after it fell 5.6% to $103.19 per share a day after announcing its second-quarter results. The Richmond-headquartered food company’s revenue rose 7.3% year over year last quarter to $1.63 billion, missing analysts’ expectations.
Despite positive sales growth, Premium Brands’s adjusted quarterly earnings fell 8% from a year ago to $1.27 per share amid inflationary pressures. PBH stock now trades with 25.4% year-to-date gains.
On the flip side, Cargojet and Sleep Country Canada stood out as the top-performing TSX stocks for the day, as they climbed by at least 2% each.
Based on their daily trade volume, Enbridge, Suncor Energy, Canadian Natural Resources, and Cenovus Energy were the most active stocks on the exchange.
TSX today
After witnessing steep declines in the last couple of sessions, commodity prices across the board were largely mixed early Wednesday morning, pointing to a flat open for the main TSX index today.
As Canada’s second-quarter corporate earnings season nears its end, investors’ focus is likely to shift more to macroeconomic drivers. While no major domestic economic releases are due today, TSX investors may want to closely monitor the Federal Open Market Committee (FOMC) meeting minutes, monthly building permits, and weekly crude oil stockpiles data from the United States this morning.
Market movers on the TSX today
