The Canadian stock market selloff intensified on Thursday, as investors continued to dig deeper into the U.S. Federal Reserve’s latest economic projections and statement amid largely weak commodity prices. The S&P/TSX Composite Index nosedived by 423 points, or 2.1%, yesterday to settle at 19,792.
With this, the market benchmark not only fell to its lowest closing level since August 25 but also posted its worst single-day performance in slightly less than a year. While all key sectors on the TSX ended the session deep in the red territory, technology, real estate, mining, and consumer cyclical stocks primarily led the market selloff.
Top TSX Composite movers and active stocks
Wesdome Gold Mines, Altus Group, Bombardier, Ballard Power Systems, and Dye & Durham were the worst-performing TSX stocks in the last session, as they dived by more than 6% each.
Although no TSX Composite component rose more than 2%, SNC-Lavalin and Badger Infrastructure Solutions became the day’s top performers after they climbed by at least 1.5% each.
According to the Toronto Stock Exchange’s daily volume data, TC Energy, Canadian Natural Resources, Power Corporation of Canada, Cenovus Energy, and Toronto-Dominion Bank were the most active stocks.
On September 21, Northland Power (TSX:NPI) said in a press release that its Taiwan-based Hai Long offshore wind project has signed an agreement to secure long-term, +20-year non-recourse financing of around $5 billion. With the support of multiple export agencies from six different countries, 15 international and local lenders are expected to provide the financing, the Toronto-headquartered renewable energy company added.
Northland estimates the total cost of its Hai Long offshore wind project to be around $9 billion. After starting operations, the company expects the project to generate a five-year average adjusted earnings before interest, taxes, depreciation, and amortization of about $230 to $250 million and free cash flow of $75 to $85 million annually. On a year-to-date basis, NPI stock is currently down 38%.
After witnessing steep losses in the intraday trading yesterday, crude oil, natural gas, gold, and copper prices were staging a recovery early Friday morning, which could slightly lift the commodity-heavy main TSX index at the open today.
Besides services purchasing managers index data from the United States, Canadian investors may want to closely monitor the domestic monthly retail sales data this morning.
Overall, investors’ sentiments remain negative due to growing macroeconomic worries, as the TSX Composite, with its over 4% week-to-date losses, seems on track to deliver its worst weekly performance in nearly a year.