TSX Ends Notably Lower As Geopolitical Concerns Weigh

(RTTNews) - After opening slightly up and moving up a bit, the Canadian market slipped into negative territory Tuesday morning and stayed weak right till the end of the session amid worries about global growth due to the ongoing war between Russia and Ukraine.

The benchmark S&P/TSX Composite Index, which advanced to 21,213.26 in early trades, dropped to a low of 20,912.06 before eventually settling for the day at 21,004.51, with a loss of 121.85 points or 0.58%.

Materials and energy stocks gained on firm commodity prices. Consumer discretionary, healthcare and financials shares declined sharply. Several stocks from technology and industrials sections too closed notably lower.

The Capped Consumer Discretionary Index drifted down 3.27%. Magna International (MG.TO) tumbled nearly 8%. Martinrea International (MRE.TO), Linamar Corp (LNR.TO), Aritzia Inc (ATZ.TO) and Canada Goose Holdings (GOOS.TO) lost 3 to 4.25%.

In the healthcare sector, Cronos Group (CRON.TO), Aurora Cannabis (ACB.TO), Tilray Inc (TLRY.TO) and Sienna Senior Living (SIA.TO) ended lower by 3 to 4%. Canopy Growth Corp (WEED.TO) and Bausch Health Companies (BHC.TO) both shed about 2.2%.

Among financials shares, Toronto-Dominion Bank (TD.TO), Manulife Financial (MFC.TO), Fairfax Financial Holdings (FFH.TO), Sun Life Financial (SLF.TO), National Bank of Canada (NA.TO) and Royal Bank of Canada (RY.TO) lost 2 to 3.25%.

Bank of Nova Scotia (BNS.TO) ended lower by about 1.05%. The bank reported adjusted net income of $2,758 million for the first quarter of this year, compared to $2,418 million in the year-ago quarter.

Bank of Montreal (BMO.TO) ended flat. The Bank reported net income of $2,933 million for the first quarter of the current financial year, an increase of 45% over the same quarter last year. Adjusted net income was $2,584 million in the latest quarter, up 27% from a year ago.

Energy stocks Parex Resources (PXT.TO), Tourmaline Oil Corp (TOU.TO), Vermilion Energy (VET.TO), Arc Resources (ARX.TO) and Enerplus Corp (ERF.TO) rallied sharply. Several other stocks, including Whitecap Resources (WCP.TO), Suncor Energy (SU.TO), PrairieSky Royalty (PSK.TO) and Crescent Point Energy (CPG.TO) also found support.

Pan American Silver Corp (PAAS.TO), Iamgold Corp (IMG.TO), Silvercrest Metals (SIL.TO), Ssr Mining (SSRM.TO), Osisko Gold Royalties (OR.TO) and Wheaton Precious Metals (WPM.TO) were among the prominent gainers in the materials section.

Data released by Statistics Canada this morning showed the Canadian economy grew by 1.6% in the fourth quarter of 2021, the most in 4 quarters and following a 1.3% expansion in the third quarter. The economy expanded 4.6% in 2021, after a 5.2% contraction in 2020.

The data said Canada's economy grew 6.7% in the fourth quarter on an annualized basis, quickening from an upwardly revised 5.5% expansion in the third quarter of 2021.

The IHS Markit Canada Manufacturing PMI edged up to a three-month high of 56.6 in February of 2022, from a six-month low of 56.2 in January, marking the 20th back-to-back monthly expansion.

Meanwhile, data from ADP showed employment in Canada decreased by 301,000 in January of 2022, the most in 8 months.