Canada’s stock market fell sharply on Tuesday, erasing all gains from the previous session, as metal prices fell sharply and investors reacted to better-than-expected consumer inflation data. The S&P/TSX composite index closed down 528 points, or 1.7%, to end at 29,889 – marking the steepest one-day drop in more than six months.
While all major market sectors fell sharply, the TSX sell-off was mainly led by heavy declines in mining, healthcare and technology stocks.
According to the latest report from Statistics Canada, Canada’s consumer price index rose 2.4% in September, reflecting a significant increase compared to a 1.9% increase in the previous month. The rise in inflation was mainly driven by higher food prices, rekindling concerns about the Bank of Canada’s interest rate outlook.
Top TSX Composite movers and active stocks
While precious metals prices fell sharply, mining stocks rose Aya gold and silver, Lundin Gold, Eternal sources, Endeavor SilverAnd NovaGold Resources each down more than 13%, making them the worst-performing TSX stocks of the day.
Discovery of silver (TSX:DSV) was also among the worst performing stocks on the Toronto Stock Exchange, where shares fell nearly 15% to $4.87 each. This sell-off of DSV shares followed the company’s announcement of a new Resource Development Agreement with the Taykwa Tagamou Nation, aimed at promoting cooperation on mining projects within the nation’s traditional territory.
While the agreement ends a legal dispute and is positioned as a step toward responsible development, investors may have responded to lingering uncertainties surrounding the deal’s implementation and its broader impact on project timelines. In addition to these uncertainties, sharp intraday declines in silver prices also contributed to the downward pressure on DSV shares.
On the plus side, Richelieu Hardware, Magna InternationalAnd Birchcliff energy rose at least 2.3% each, making them the best-performing TSX stocks of the session.
Based on their daily trading volume Cenovus energy, B2Gold, Kinross Gold, Capstone CopperAnd Whitecap Resources were the five most active stocks on the stock exchange.
TSX today
Precious metals prices extended their losses in early Wednesday trading, indicating continued pressure on the TSX mining stocks open today.
While no major economic releases are in the pipeline, Canadian investors will continue to keep a close eye on corporate earnings on both sides of the border, with investors hoping that strong results can help offset recent macro-driven volatility.
Several TSX listed companies including Whitecap Resources, West Fraser wood, Teck Resources, WinpakAnd Mullen Groupare set to announce their latest quarterly results today, which could keep their shares on edge throughout the trading session.
Market movements on the TSX today
#TSX #Today #stocks #Wednesday #October