TSX plunges to lowest close since March 2021, loonie down

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Highlights

  • The S&P/TSX composite index slipped 1.5% to close at 18,717.12 on Thursday.
  • The losses came amid rising investor concerns about the economy slowing down.
  • The TSX energy sector plummeted by 6.9% on Thursday.

The S&P/TSX composite index plunged to its lowest level in over a year on Thursday, June 23, as rising investor concerns about the economy slowing down pressed down on cyclical sectors.

The Canadian benchmark index slipped 286.92 points, or 1.5%, to close at 18,717.12, which was its lowest closing point since March 2021.

One-year price chart of TSX Composite Index (June 23). Analysis by © 2022 Kalkine Media®

Also read: CVE, CPG, SU: 3 TSX energy stocks that are soaring this year

The TSX energy sector plummeted by 6.9% on Thursday amid rising fears about the possible impact of a slowed-down economic growth on oil demand, while the basic materials sector slipped by 5% as gold and copper prices fell. The financial services sector also noted a decline of 1.7%.

Technology stocks, however, jumped by 4.1% as the US 10-year yield tumbled to its lowest level in about two weeks.

Some market experts expect the Canadian markets to note a decline of 14.5% in Q2 2022, which would be the main index’s largest fall on a quarterly basis since Q1 2020.

Active Volume

Suncor Energy Inc (TSX: SU), Baytex Energy Corp (TSX: BTE) and Athabasca Oil Corporation (TSX: ATH) were among the most active stocks on the TSX on Thursday from the volume standpoint.

Movers and Laggards

Also read: 3 TSX natural gas stocks to buy right now & hold forever: TOU, ENB, CVE

Commodity

Gold futures traded lower by 0.47% at US$ 1,829.8 per ounce on Thursday.

Oil prices, too, fell on June 23 amid increasing anticipation about global fuel demand. Brent oil futures were down by about 1.51% to US$ 110.05, although Crude Oil WTI Futures rose by 0.49% to US$ 104.39.

Currency

Investor worries about a possible economic slowdown pulled down the Canadian dollar as well on Thursday as it dwindled against the US greenback to fall 0.3% at 1.2985. The decline was possibly also triggered by the preliminary data showing a decline in factory sales.



 


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