The stock market in Canada trended downward for the second consecutive session on Tuesday as hotter-than-expected consumer inflation data for August raised the possibility that the Bank of Canada might continue to raise interest rates in the near term. The S&P/TSX Composite Index tanked by 274 points, or 1.3%, for the session to settle at 20,219, registering its worst single-day performance in over a month.
While all key market sectors witnessed weakness, the selloff on the Toronto Stock Exchange was mainly led by big losses in healthcare, utilities, metal mining, and technology stocks.
Top TSX Composite movers and active stocks
Shares of Equinox Gold (TSX:EQX) crashed by 20% to $5.69 per share after announcing a bought deal offering of convertible senior notes. In a press release, the Vancouver-headquartered metal mining company said that “it has entered into an agreement with BMO Capital Markets” to launch the offering worth about $150 million, and these 4.75% unsecured convertible senior notes are due in 2028.
Besides general corporate purposes, Equinox plans to utilize the net proceeds of the offering to repay its debt. However, the news seemingly made investors nervous, triggering a selling spree. These steep declines trimmed EQX stock’s year-to-date gains to 28.4%.
Bausch Health Companies, Lithium Americas, Energy Fuels, and First Quantum Minerals were also among the worst-performing TSX stocks yesterday, as they plunged by more than 6% each.
On the flip side, Methanex and Cogeco Communications stood out as top-performing TSX stocks for the day, as they inched up by more than 2% each.
Based on their daily trade volume, Baytex Energy, Bank of Nova Scotia, TC Energy, Canadian Natural Resources, and TD Bank were the five most active stocks on the exchange.
TSX today
After consistently rallying for several days, crude oil, gas, and precious metals prices turned negative in the last session. These commodities were extending their losses early Wednesday morning, pointing to a lower open for the main TSX index today.
Although no major domestic economic releases are due, the U.S. Federal Reserve’s interest rate decision, updated economic projections, and statement will remain on Canadian investors’ radar this afternoon. Note that the Fed’s monetary policy event is expected to lead to high volatility in tech stocks.
Besides that, energy investors may also want to monitor the weekly U.S. crude oil stockpiles data this morning.
Market movers on the TSX today
