After four consecutive days of impressive gains, the Toronto Stock Exchange’s S&P/TSX composite index dropped on Friday.
The market was reacting to factors which included Wall Street’s response to the unexpected rise in monthly U.S. consumer prices in August, as well as profit-taking by investors. In much of the day’s trading, the index was down by over 200 points, sometimes dropping to as high as 370 points.
On Friday, the stock exchange recorded its largest single-day gain in about four months with a gain of 360.34 points, or 1.9 per cent, at 19,773.34. The last time it had a higher leap was on May 13.
On Wednesday, the index rose from 19,088.20 to 19,241.40, gaining 153.2 points. On Thursday, it rose from 19,241.40 to 19,413.00, gaining 171.6 points. On Friday, it shot up from 19,413 to 19,773.34, with the earlier-stated huge gain of 360.34 points. When a new trading week began on Monday, the index rose from 19,773.34 to 19,987.20, gaining 213.9 points. However, when the market opened on Tuesday, the fall came.
At 10:14 a.m. ET, the index was down 193.06 points, or 0.97 per cent, at 19,794.17. The technology and healthcare sectors were worst hit, with a 3.2 per cent drop in value. The energy sector remained virtually the same. However, the materials sector, which incorporates precious and base metals miners and fertilizer companies, lost 0.7 per cent in response to a fall of over one per cent in gold prices caused by a stronger dollar. The financials sector dipped by 1.4 per cent.
The top three-performing stocks were Bausch Health Cos. Inc., Badger Infrastructure Solutions Ltd. and Sandstorm Gold Ltd. Bausch Health rose by 3.28 per cent; Badger Infrastructure Solutions rose by 3.08 per cent; while Sandstorm Gold rose by 2.76 per cent.
Conversely, the least-three-performing stocks were Lightspeed Commerce Inc., Centerra Gold Inc., and Dye & Durham Ltd. Lightspeed Commerce lost 7.83 per cent; Centerra Gold lost 7.65 per cent; while Dye & Durham lost 6.65 per cent.
Contrary to expectations, the U.S. monthly consumer prices rose in August to 8.3 per cent, setting off fears that the Federal Reserve would raise the interest rate next week by as high as 75 basis points as a way of keeping inflation at bay. The Bank of Canada had taken the same step last week with a raise of 75 basis points, pushing its benchmark interest rate to a 14-year high of 3.25 per cent.
The U.S. consumer price index had risen by 0.1 per cent last month after being unchanged in July. Economists had predicted that it would drop in August.
At 2.00 p.m., the S&P/TSX composite index stood at 19,765.48, with a loss of 221.75 points, or 1.11 per cent.
In the U.S., the S&P 500 stood at 3,986.47, with a loss of 123.94 points, or 3.02 per cent. The DOW stood at 31,497.20, with a loss of 884.14, or 2.73 per cent.
The loonie was down by $0.0084, or 1.0980 per cent, exchanging for $0.7612.
Crude oil was also down by $1.99, or 2.27 per cent, selling at $85.79 per barrel.
Gold futures fell to $1,714.70 per ounce, with a loss of $25.90, or 1.49 per cent.
Meanwhile, as of 2.00 p.m., the Canadian stock market had gained 3.55 per cent in the last five days. However, in the past month, it had lost 2.49 per cent. In the past three months, it had lost 1.11 per cent. In the last year, it had lost 3.83 per cent. And since the beginning of the year, it had lost 6.87 per cent.
Market movers
Let us now look at the stories had excited our investing community the most.
Portofino’s (POR) geological team has been mobilized to its lithium properties and commenced a mapping, sampling, and reconnaissance exploration program.
Patriot One (PAT) plans to deploy its SmartGateway screening solution at the SAP Center.
Revival Gold (RVG) released initial results from its 2022 drilling program and provided an update on exploration at the Beartrack-Arnett Gold Project.
Finally, capital raises so far this week are Altiplano, Kenorland, Jaxon, Canada Jetlines, Tamarack Valley Energy.
