TSX Ends Lower Again As Inflation Data, Weak Commodity Prices Weigh

The Canadian market ended lower on Tuesday as hopes of an early rate cut by the central bank faded a bit after data showed an acceleration in the nation’s consumer price inflation in the month of December.

Weak crude oil and bullion prices triggered some heavy selling at several counters in energy and materials sectors, contributing substantially to market’s decline.

Data from Statistics Canada showed that the consumer price index rose 3.4% year-on-year in December, following a 3.1% increase in November. The rate matched expectations.

On a seasonally adjusted monthly basis, consumer prices moved up 0.3%, the same rate as seen in the previous month. Core CPI, excluding food and energy, eased to 0.2% from 0.3% last month.

The benchmark S&P/TSX Composite Index, which tumbled to 20,842.98, ended down 113.79 points or 0.54% at 20,948.09.

The Energy Capped Index dropped 3.05%. Parex Resources (PXT.TO) plunged 15.7%. The company said average production in the fourth quarter fell short of expectations and production guidance missed analyst forecasts.

Parex Resources said it expects average annual production to be between 54,000 to 60,000 barrels a day, which represents 5% year-over-year growth at the midpoint.

Tourmaline Oil Corp (TOU.TO), Arc Resources (ARX.TO), Vermilion Energy (VET.TO), Advantage Oil & Gas (AAV.TO), International Petroleum Corp (IPCO.TO) and Birchcliff Energy (BIR.TO) lost 4 to 7%.

The Materials Index fell 2.28%. Barrick Gold Corp (ABX.TO) and First Majestic Silver Corp (FR.TO) lost 8.8% and 8%, respectively. Osisko Mining Inc (OSK.TO), Lundin Mining Corp (LUN.TO), Interfor Corp (IFP.TO), Seabridge Gold (SEA.TO), K92 Mining Inc (KNT.TO), MAG Silver Corp (MAG.TO), Pan American Silver Corp (PAAS.TO) and Lundin Gold (LUG.TO) ended down 3.5 to 4.8%.

Healthcare stock Tilray Inc (TLRY.TO) climbed nearly 7%. Communications stocks Cogeco Inc (CGO.TO) and Cogeco Communications (CCA.TO) gained 4.5% and 3.3%, respectively. Quebecor Inc (QBR.B.TO) and BCE Inc (BCE.TO)…