2-for1 Sale
A continued selloff in technology stocks drove the Canadian equities market lower from its highest closing level in over 21 months despite the release of much cooler-than-expected domestic consumer inflation data for January. The S&P/TSX Composite Index slipped by 38 points, or 0.2%, on Tuesday to settle at 21,218.
Besides the tech sector, heavy losses in the shares of industrial, real estate, and consumer cyclical companies also weighed on the TSX index.
In January 2024, Canada’s consumer price index inched up by 2.9% year over year due mainly to lower gasoline prices, marking a notable deceleration from December’s 3.4% increase.
Top TSX Composite movers and active stocks
Methanex (TSX:MX) plunged by 10.5% to $56.81 per share, making it the worst-performing TSX stock for the day. This selloff in MX stock came after the Vancouver-headquartered methanol producer announced a delay in commercial production of its new Geismar 3 methanol plant in Louisiana up to the end of the third quarter of 2024.
Methanex said that the delay mainly stems from initial start-up complications, not design or construction issues, with the total capital cost not expected to significantly exceed US$1.30 billion. The company is working to expedite the repair process. After rallying by 22.3% last year, MX stock has now dived by 9.4% so far in 2024.
Lithium Americas (Argentina), Lithium Americas, NexGen Energy, and SSR Mining were also among the bottom performers on the Toronto Stock Exchange as they plunged by at least 5.5% each.
On the positive side, shares of Dundee Precious Metals (TSX:DPM) climbed by 6.6% to $8.78 per share after the Toronto-headquartered gold miner told investors that it would not submit a revised acquisition offer for Osino Resources, following a superior proposal from another company. Despite this setback, Dundee emphasized its strong free cash flow and growth pipeline, including the Čoka Rakita gold project in Serbia. DPM stock is now up 3.5% on a year-to-date basis.
Canada Goose and Definity Financial jumped by at least 4.3% yesterday, making them among the top-performing TSX stocks.
According to the exchange’s daily trade volume data, Suncor Energy, Enbridge, Manulife Financial, Great-West Lifeco, and Canadian Natural Resources stood out as the most active stocks.
TSX today
Metals prices, especially gold and silver, were trading on a slightly bullish note early Wednesday morning, which could lift TSX mining stocks at the open today. While no major economic releases are due this morning, stocks may still remain volatile as investors await the U.S. Federal Open Market Committee’s meeting minutes, which are expected to be released this afternoon.
On the corporate events front, many TSX-listed companies, including Superior Plus, Stelco, Pan American Silver, Suncor Energy, B2Gold, Torex Gold, Lundin Mining, Innergex Renewable Energy, Northland Power, Crombie REIT, Nutrien, Gildan Activewear, and Sprott, are expected to announce their latest quarterly results on February 21.
Market movers on the TSX today
