The Canadian market, which slipped deeper into the red after opening with a big negative gap, has regained a significant portion of lost ground Wednesday afternoon, but still remains firmly down in negative territory.
Weak European markets and data showing a surge in Canadian inflation in the month of May weighed on sentiment.
Data from Statistics Canada showed Canada’s annual inflation quickened to 7.7% in May of 2022, the highest since January 1983 and above market expectations of 7.4%. The Consumer Price Index in Canada increased 1.4% in May of 2022 over the previous month.
Core consumer prices in Canada increased a record 6.1% year-on-year in May of 2022, above 5.7% in April and forecasts of 5.9%. On a monthly basis, consumer prices increased 0.8% in April, accelerating from a 0.7% rise in the prior month.
Energy stocks are down sharply, weighed down by falling crude oil prices. Materials shares are the other prominent losers. Technology stocks are up with strong gains. Several stocks from industrials and utilities sections are also faring well, contributing to the market’s recovery from lower levels.
The benchmark S&P/TSX Composite Index, which plunged to 18,871.70, losing more than 385 points in the process, has recovered to 19,121.90, still down 135.39 points or 0.7% from the previous close.
The Energy Capped Index is down 4.41%. Baytex Energy (BTE.TO), MEG Energy (MEG.TO), Crescent Point Energy (CPG.TO), Vermilion Energy (VET.TO), Nuvista Energy (NVA.TO) and Enerplus Corp (ERF.TO) are down 7 to 10%.
Materials shares Teck Resources (TECK.B.TO), Ivanhoe Mines (IVN.TO), Hudbay Minerals (HBM.TO), First Quantum Minerals (FM.TO), Methanex Corp (MX.TO), Ero Copper (ERO.TO), Iamgold (IMG.TO) and Stelco Holdings (STLC.TO) are down 3 to 8%.
Technology stock Docebo Inc (DCBO.TO) is soaring nearly 12%. Shopify Inc (SHOP.TO) is gaining 6% and Kinaxis Inc (KXS.TO) is climbing nearly 5%. BlackBerry (BB.TO), Telus International (TIXT.TO), Haivision Systems (HAI.TO), Open Text Corp (OTEX.TO) and Lightspeed Commerce (LSPD.TO) are gaining 1.6 to 3%.
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