TSX craters on wor­ries slump from virus won’t end soon

Calgary Herald - - FP CALGARY - DAN HEAL­ING

TORONTO Canada’s main stock in­dex fol­lowed other North Amer­i­can mar­kets sharply lower on Thurs­day, ex­tend­ing its losses amid con­cerns about how quickly the econ­omy can re­bound from the COVID-19 pan­demic.

The S&P/TSX com­pos­ite in­dex closed down 650.41 points — more than four per cent — at 15,050.92 on Thurs­day af­ter drop­ping 132.41 points on Wed­nes­day.

Amer­i­can stock ex­changes were hit even harder. In New York, the Dow Jones in­dus­trial av­er­age was down 6.9 per cent or 1,861.8 at 25,128.17.

The S&P 500 in­dex plunged 5.9 per cent or 188.04 points at 3,002.10 and the Nas­daq com­pos­ite fell 5.3 per cent or 527.62 points at 9,492.73.

Mar­ket ob­servers say a rally in the mar­kets since late March wasn’t jus­ti­fied given the dire state of the econ­omy.

On Wed­nes­day, the U.S. Fed­eral Re­serve warned the road to re­cov­ery from the worst down­turn in decades would be a long one.

“The (Toronto Stock Ex­change) mar­ket is tak­ing it on the chin to­day. Yes­ter­day wasn’t a par­tic­u­larly great day ei­ther,” said Les Stel­mach, port­fo­lio man­ager at Franklin Tem­ple­ton Canada. “I think to­day it’s re­ally a bit of an un­wind­ing of some of that en­thu­si­asm from (last) Fri­day and Mon­day that par­tic­u­larly for some of the en­ergy stocks was off the charts in terms of pos­i­tive move­ment in stock prices on re­ally very lit­tle news.”

The en­ergy sec­tor led the Toronto mar­ket lower with a slide of al­most 10 per cent.

The sell-off in­volved some of the coun­try’s big­gest oil­sands pro­duc­ers, with Cana­dian Nat­u­ral Re­sources Ltd. down 10.7 per cent, Sun­cor En­ergy Inc. off by 8.4 per cent and Cen­ovus En­ergy Inc. down 10.8 per cent.

The July crude oil con­tract was down US$3.26 at US$36.34 per bar­rel, while the July nat­u­ral gas con­tract was up 3.3 cents at US$1.81 per MMBTU.

Other sec­tors also strug­gled in what turned out to be a wide­spread sell-off. Health care fell by 8.6 per cent and the met­als and min­ing sec­tor was down 8.4 per cent.

“It’s the level of un­cer­tainty out there,” said Stel­mach. “There are so many vari­ables ...”

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.