Canadian stocks witnessed a significant decrease slightly after midday on Tuesday. This slump was a response to slower than projected economic growth for the country in February.
Investors are eagerly awaiting the Federal Reserve's monetary policy announcement, set for release on Wednesday. Although the Federal Reserve is not expected to change the current interest rate, the key points to watch would include the official statement and Fed Chair Jerome Powell's press conference. It is anticipated that the Fed might announce a rate cut in September.
Canada's material and energy stocks are facing a considerable drop due to declining bullion and oil prices. Also seeing significant losses are industrial, technology and consumer staples stocks, while certain stocks from the consumer discretionary sector are showing promising gains.
The benchmark S&P/TSX Composite Index recorded a drop of 182.99 points or 0.84%, standing at 21,828.63 slightly past noon.
The Materials Capped Index saw a 2.1% decrease. Companies such as Kinross Gold Corp, Iamgold Corp, Torex Gold Resources, Silvercrest Metals, K92 Mining Inc, Seabridge Gold, Wesdome Gold Mines, Methanex Corp, and Eldorado Gold are showing a decline between 2.7 to 4%.
Ivanhoe Mines Ltd. reported an adjusted EBITDA of $126 million for Q1 of 2024, compared with $172 million for the same period in 2023. Similarly, Cameco Corporation reported a net loss of $7 million in the first quarter, compared to a net profit of $119 million in the first quarter of the previous year.
The Energy Capped Index dropped by 1.4%. Companies such as Baytex Energy, International Petroleum, Tamarack Valley Energy, Precision Drilling Corp, Africa Oil Corp, Crescent Point Energy, Vermilion Energy, Arc Resources, and MEG Energy saw a decrease in shares by 2 to 3.1%.
In the technology sector, Bitfarms experienced the most significant drop of 7%, followed by Coveo Solutions, Hut 8 Corp, Tecsys Inc and Docebo Inc, which saw a decline between 2.3 to 4.5%.
Industrial stocks like Snc-Lavalin Group, TFI International, Ballard Power Systems, and Badger Infrastructure Solutions also fell between 2 to 2.7%.
On a positive note, certain gainers like Restaurant Brands International witnessed nearly a 4% increase in shares. The company reported an adjusted profit of US$ 331 million, or US$ 0.73 per share for the first quarter of this year, compared with US$ 340 million, or US$ 0.75 per share, last year.
Cargojet saw a rise of 4.5%, continuing its gains from the previous session. Likewise, Boyd Group Services managed an increase of 3.5%. Meanwhile, First Quantum Minerals and Cairvest Group have seen an increase of 2.3% and 2%.
Statistics Canada's data revealed that the country's economy grew by only 0.2% in February, falling short of the preliminary estimate of 0.4%. According to initial estimates, the Canadian economy is expected to have remained unchanged in March 2024.