Canadian stocks trended downward for the fourth consecutive session on Thursday, despite a recovery in commodity prices, as worries about more interest rate hikes and a dimming economic outlook encouraged investors to flee risks. The S&P/TSX Composite Index slid by 87 points, or 0.4%, in the last session to settle at 19,812, its lowest closing level since July 10.
On the one hand, a bounce back in oil and gas prices helped energy stocks rebound. On the other hand, heavy losses in other key market sectors like technology, consumer cyclicals, industrials, and financials weighed on the TSX benchmark.
Top TSX Composite movers and active stocks
Bombardier, OceanaGold, Quebecor, and Shopify were the worst-performing TSX stocks for the day, as they dived by at least 3.8% each.
In contrast, Teck Resources (TSX: TECK.B) climbed nearly 4% yesterday to $52.32 per share, making it the top-performing TSX Composite component for the day. This rally in Teck stock came after a Bloomberg report, citing unnamed sources, claimed that the Indian steel producer, JSW Steel, is making efforts to acquire a majority stake in Teck’s steelmaking coal business.
While “there’s no certainty an agreement will be reached,” the report added that JSW’s bid to purchase Teck’s coal business is likely to face competition from the Swiss multinational mining giant Glencore. After these gains, Teck stock is now up 3.3% on a year-to-date basis.
An intraday rally in crude oil prices also drove energy stocks Suncor Energy, Birchcliff Energy, and Imperial Oil up by at least 2.2% each yesterday, making them among the top performers on the Toronto Stock Exchange.
Based on their daily trade volume, Suncor Energy, Enbridge, Canadian Natural Resources, and Cenovus Energy were the most active stocks on the exchange.
TSX today
After bouncing back from their lowest levels in many weeks, crude oil and metals prices were extending their gains early Friday morning, which could help the commodity-heavy main TSX index rise at the open today.
While no major economic or corporate releases are due, TSX investors may want to keep a close eye on consistently rising U.S. and Canada treasury yields today. Continued aggressive increases in bond yields due mainly to fears of more interest rate hikes may reflect a decline in stock investors’ risk appetite, which could be one of the main reasons why Canadian tech stocks have witnessed a selloff in the last three sessions.
Overall, the TSX Composite benchmark remains on track to end this week deep in the negative territory, as it has already lost 2.9% of its value week to date.
Market movers on the TSX today
