TSX slips to lowest weekly close in 2 years as energy declines

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TSX slips to lowest weekly close in 2 years as energy declines

TSX slips to lowest weekly close in 2 years as energy declines
Image source: © Littlemacproductions | Megapixl.com

Highlights

  • The S&P/TSX composite index slipped by 0.4% to close at 18,930.48 on Friday.
  • This caused the week’s decline to be 6.6%, its largest weekly fall since March 2020.
  • The TSX energy sector plunged for the seventh day in a row on Friday.

Canada saw its primary stock market index plummet on Friday, June 17, closing at the lowest week point in roughly two years. The decline is believed to have come amid the energy sector’s losing streak that erased the gains made by the technology and consumer discretionary stocks.

The S&P/TSX composite index slipped by 73.58 points, or 0.4%, to close at 18,930.48 on Friday. This caused the week’s decline to be about 6.6%, which was its largest weekly fall since March 2020.

One-year price chart of TSX Composite Index (June 17)

One-year price chart of TSX Composite Index along with SMA 20-day, SMA 30-day, SMA-50-day (June 17). Analysis by © 2022 Kalkine Media®

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

The TSX energy sector plunged for the seventh day in a row on Friday, down by 5.7%, as oil prices fell. The index’s basic materials sector, which comprises mining and fertilizer stocks, lost 0.9% as the prices of gold and copper sank.

The technology sector rose by 2.2%, while the consumer discretionary stocks climbed by 1.7% and industrials grew by 1% on Friday.

Active Volume

Athabasca Oil Corporation (TSX: ATH), Suncor Energy Inc (TSX: SU) and Cenovus Energy Inc (TSX: CVE) were among the most active stocks on the TSX on Friday from the volume standpoint.

Movers and Laggards

Movers and Laggards

Wall Street

The Wall Street saw a modest climb on Friday but noted an overall volatility for the week as investors continued to show concern about a possible recession hitting the markets as central banks around the world resorted to rate hikes.

The US, for one, hiked its interest rates on Wednesday by about 75 basis points as latest data show that inflation had mounted by 8.6% in May this year.

On Friday, the S&P 500 rose by about 0.22% to 3,674.84, while the Nasdaq shot up by 1.43% to 10,798.35. The Dow Jones, on the other hand, dipped by 0.13% to 29,888.78.

On a weekly basis though, the S&P 500 fell by 5.79% and the Nasdaq lost 4.78%, while the Dow noted its largest weekly percentage decline since October 2020 with a fall of 4.79%.

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

Commodity

Gold traded lower at US$ 1,839.35 per ounce on Friday.

On the other hand, oil prices fell to a three-week low amid rising investor fears about rate hikes impacting energy demand.

Brent futures were down by about 5.58% to $113.12, while West Texas Intermediate (WTI) crude fell $6.83, or 5.7%, to $110.93.

Currency

The Canadian dollar slid against its US counterpart on June 17, down by 0.7% to 1.3035. This was the loonie’s lowest point since hitting 1.3045 on May 13.

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