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Spike in COVID-19 cases across Canada sent stocks tumbling on the Toronto Stok Exchange, making it the worst day since early July. Benchmark S&P/TSX Composite Index traded below its 200-day simple moving average (SMA) on Wednesday, which act as a long-term support level in an underlying security. Typically, price below 200-day SMA is considered long-term bearish sentiment. The index traded 434.37 points or 2.71% lower at 15,586.57. Also, the index traded below its short-term and immediate support levels of 50-day, 30-day, 20-day, 10-day and five-day SMAs.
The leading momentum indicator, the Moving Average Convergence Divergence (MACD), is down and hovering below its nine-day SMA signal line, a bearish indicator. Further, the difference between 12-day and 26-day EMAs is negative, another bearish technical indicator.
The 14-day and nine-day relative strength index is oscillating in a neutral zone, and mostly tilted towards the oversold territory.
Technical Chart (as on October 28, 2020 after the market close). Source: EODHD/Others (Thomson Reuters)
At the closing, the index featured a dividend yield of 3.78% and trading at a Price-to-Earnings (PE) multiple of 16.88x, with an outstanding market capitalization of C$ 2.20 trillion.
Leading the index, FirstService Corp, Ritchie Bros. Auctioneers Inc and WPT Industrial Real Estate Investment Trust are among the top performers, gaining 1.7%, 0.8% and 0.6%, respectively.
Amid free fall in the broader markets, Vermilion Energy Inc, Enerplus Corp, and Aurora Cannabis Inc are among the top laggards on the index and settled lower by 8.7%, 5.2% and 3.1%, respectively.
From the volume standpoint, Husky Energy Inc., Cenovus Energy Inc. and Barrick Gold Corporation are among the most active volume stocks on Wednesday.
Five-day Price Chart (as on October 28, 2020, after the market close); Source: EODHD/Others (Thomson Reuters)
On Wall Street: The S&P 500 and the Dow hit their lowest levels since late-September on Wednesday as coronavirus cases surged globally while US presidential election next week added to worries. The Dow Jones traded approximately 943 points or 3.43% lower at 26,519.95, and the S&P 500 index ended 119.65 points or 3.53% lower at 3,217.03. The technology dominated the Nasdaq Composite Index traded 426.48 points or 3.73% lower at 11,004.87.
Commodity Cues*
Gold Futures traded 1.71% lower at US$ 1,879.20/oz.
Brent Oil Futures plummeted 5.05% on Wednesday and ended at US$ 39.12/bbl and America Oil benchmark WTI Crude slumped 5.51% to US$ 37.39/bbl.
USD/CAD traded at 1.3319 on Wednesday vs 1.3184 in the previous trading session.
*Details after markets close on October 28, 2020.
