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TSX Lower on Global Slowdown Worries; Bofa Sees Canada GDP Growth at 0.8% In 2023

Published 2022-11-21, 11:21 a/m
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By Ketki Saxena

Investing.com -- The TSX tracked global stocks lower this morning, following news that China is locking down a major transportation hub in a district of Guangzhou after a surge in Covid-19 cases. 

The commodity-heavy Canadian index retraced some losses along with crude prices, which had fallen to 10 months lows following reports that OPEC+ was mulling an output boost of 500,000 barrels per day (bpd). Saudi Arabia has since said that an output boost was not under consideration, and the bloc may cut production instead.

The Biggest Stories on Bay Street 

Smith Financial Corp., which already owns 9.1% of alternative mortgage lender Home Capital Group Inc . Home Capital, will acquire the lender for $44 per share – a 63% cent premium to Friday’s closing price.  The agreement includes a “go-shop period” until Dec. 30 during which Home Capital and its financial advisers can solicit bids and enter into negotiations with rival buyers.

AltaGas (TSX:ALA) Ltd. has announced that CEO Randy Crawford will retire in the first half of next year. Crawford is expected to remain in his role until a successor is named. AltaGas says it is now working with external advisers to evaluate internal and external candidates for the chief executive role.

Canadian Stocks Moving Markets This Morning 

Top Gainers:

  • Home Capital Group (TSX:HCG)
  • EQB Inc (TSX:EQB)
  • First Service (HK:2107)

Biggest Losers: 

  • MEG Energy Corp (TSX:MEG)
  • Cenovus Energy 
  • Enerplus (TSX:ERF)

In Canadian Economics 

BofA global strategist Ethan Harris published his year-ahead report for 2023, including calls for Canadian GDP growth at 3.3% vs. a year ago forecast of 3.8%. Harris notes that “Still, above 3% growth is strong for Canada.” In 2023, the Canadian economy is expected to decelerate to 0.8%, mainly due to higher interest rates. 

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