- 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®
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.
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
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.
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.