The Canadian stock market selloff intensified on Wednesday after the Bank of Canada (BoC) announced its decision to hold the policy rate steady at 5% but didn’t rule out the possibility of further interest rate hikes in the future. As a result, the S&P/TSX Composite Index dived by 102 points, or 0.5%, yesterday to settle at 20,274, extending its week-to-date losses to 0.9%.
In its latest statement, BoC noted that its “Governing Council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed,” hurting tech investors’ sentiments. Besides tech stocks, heavy losses in the energy sector amid tanking crude oil and natural gas prices also dragged the TSX benchmark downward.
Top TSX Composite movers and active stocks
Tamarack Valley Energy (TSX:TVE) plunged 8.6% to $ 3.07 per share, making it the worst-performing TSX stock for the day. These big declines in TVE stock came after the Calgary-headquartered oil and gas producer announced its 2024 capital and operating budget, focusing on near-term free funds flow generation and long-term net asset value capture.
Tamarack’s budget features a two-phase capital plan aligning with the new CSV Albright sour gas plant’s on-stream timing in the Charlie Lake area. In addition, it emphasizes oil-weighted production, optimizing capital programs, and generating significant free funds flow at US$75 per barrel West Texas Intermediate budget pricing. After its corporate budget announcement, several Street analysts, including from National Bank of Canada, Stifel, and Royal Bank of Canada, slashed their target prices on TVE stock, hurting investors’ sentiments. Year to date, Tamarack stock is now down 31.2%.
Baytex Energy, Canadian Natural Resources, Dye & Durham, and Suncor Energy were also among the bottom performers on the Toronto Stock Exchange, as they fell at least 5.5% each.
On the flip side, Park Lawn, Lithium Americas (Argentina), Cargojet, and Brookfield Renewable Partners inched up by at least 4.3% each, making them the day’s top-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Baytex Energy, Tamarack Valley Energy, and TC Energy were the most heavily traded stocks on the exchange.
TSX today
After sliding for several days, commodity prices, except natural gas, staged a recovery early Thursday morning, which could lift the resource-heavy TSX index at the open today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the weekly jobless claims data from the United States this morning. Later in the afternoon, BoC Deputy Governor Toni Gravelle’s speech will remain on TSX investors’ radar.
Market movers on the TSX today
