The selloff in Canadian stocks intensified on Friday after the latest U.S. labour market report hinted towards a surging unemployment rate and significantly weaker-than-expected increase in non-farm payroll employment, reigniting fears of a recession in the near term. The S&P/TSX Composite Index dived by 496 points, or 2.2%, before going into the long Civic Holiday weekend to settle at 22,228, posting its biggest single-day percentage decline since February.
While all key sectors ended the session in the red, the TSX selloff was mainly led by heavy losses in healthcare, technology, and energy stocks.
Despite job gains seen in health care, construction, and transportation and warehousing, the U.S. unemployment rate increased to 4.3% in July 2024, its highest level since October 2021, with the information sector experiencing job losses.
Top TSX Composite movers and active stocks
Lightspeed Commerce, Denison Mines, Bausch Health, Baytex Energy, and Celestica were the worst-performing TSX stocks for the day, tanking by at least 8% each.
On the flip side, shares of Definity Financial (TSX: DFY) climbed by 5.7% to $49.80 per share, making it the session’s top-performing TSX stock. This rally in DFY stock, despite the broader market weakness, came a day after the Waterloo-based leading property and casualty insurance firm announced its upbeat second-quarter earnings.
In the quarter ended June 2024, Definity’s revenue rose 9.6% from a year ago to $1.05 billion, with gross written premiums increasing 14.2% to $1.24 billion. A decrease in catastrophe losses and improved operational efficiencies also helped the company post a solid 67.9% year-over-year increase in its adjusted quarterly earnings to $0.94 per share, crushing Bay Street analysts’ expectations of $0.63 per share by a wide margin. On a year-to-date basis, DFY stock is now up around 33%.
Centerra Gold and Primaris Real Estate Investment Trust were also among the day’s top gainers on the Toronto Stock Exchange, rising by more than 2% each.
Based on their daily trade volume, Baytex Energy, Enbridge, Manulife Financial, Denison Mines, and Suncor Energy were the most active stocks on the exchange.
TSX today
The Toronto Stock Exchange remained closed on Monday for the Civic Holiday in Canada, but escalating geopolitical tensions in the world and growing fears about the potential recession amid the rising U.S. unemployment rate led to a massive global stock market selloff yesterday. Although many major global indices, including Japan’s Nikkei 225 index and Australia’s ASX 200, staged a recovery Tuesday, the recent global stock market selloff and falling commodity prices could pressure the main TSX index at the open today.
Besides the domestic purchasing managers index, Canadian investors may want to keep an eye on the latest U.S. crude oil stockpile data this morning.
On the corporate events front, many TSX-listed companies, including Suncor Energy, Finning International, InterRent REIT, Great-West Lifeco, Labrador Iron Ore Royalty, Nuvei, Osisko Gold Royalties, iA Financial, Dream Industrial REIT, and Pet Valu, are expected to announce their latest quarterly results on August 6.
Market movers on the TSX today
