Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

At Midday: All TSX Sectors in Red as Rate Hikes Weigh; Energy, Tech Lead Losses

Published 2022-06-16, 12:36 p/m
Updated 2022-06-16, 12:39 p/m
© Reuters.

© Reuters.

By Ketki Saxena 

Investing.com -- At 12:30 p.m in Toronto, the S&P/TSX Composite Index was at 19,117.39 points, down 2.52% in the day’s trading. The Canadian benchmark pushed further into correction territory, as fears of economic slowdown driven by monetary policy tightening from central banks weighed on global equities. 

Following a brief respite after yesterday’s 75bps rate hike announcement from the Federal Reserve, concerns of a global slowdown were accelerated by rate hikes from the Bank of England, Switzerland’s Central Bank, and fears of a hawkish Pivot from the Japanese central bank as it begins a 2-day policy meeting. 

All TSX sectors were firmly in the red at midday, with the index most weighed by heavyweight energy (-4.49%), The energy subindex was weighed by volatility in crude following the various rate hikes, though the commodity managed to eke out a gain at midday on the back of tight supply, worsened by the recent collapse in Libyan output and new U.S. sanctions on Iran. 

Heavyweight financials (-2.85%) despite being a traditional beneficiary of rising rates, also pressured the TSX as worries of an economic slowdown, driven by rising interest rates and still-high inflation, worsen concerns of waning loan demand and rising defaults. Banks are also contending with still-high inflation increasing expenses, and lower investment banking revenues.  

The worst-performing sectors on the TSX as of midday included Consumer discretionary, hit by worries of slowed spending, rate-sensitive growth sectors tech and healthcare, and Real Estate and REITs, pressured by the anticipated cooling in Canadian housing as rates spike. 

Lifeworks was the biggest gainer on the TSX today, with share prices spiking after Telus (TSX:T) announced a deal to buy the company for 2.9$ billion including debt. Under the agreement, LifeWorks shareholders will have the option to receive $33 in cash or 1.0642 Telus shares for each LifeWorks share held, subject to pro-ration.

K92 Mining (TSX:KNT) (+3.67%), Aginco Eagle Mines (+3.18%), Enghouse Systems (+2.89%), and Barrick Gold (NYSE:GOLD) (+2.42%) were also amongst today’s top gainers. 

The biggest losers on the TSX today included Cargojet (-14.54%), Lion Electric (-8.56%), Lightspeed Commerce (TSX:LSPD) (-8.41%), Hut 8 Mining (TSX:HUT) (-8.26%) and Interfor Corp (TSX:IFP) (-8.12%)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.