The Canadian stock market appears to be heading towards another weak closure, with equities dipping further into negative territory on Wednesday afternoon following the Federal Reserve's indication of fewer interest rate reductions next year than previously forecasted.
As anticipated, the Federal Reserve lowered its interest rates by 25 basis points today, describing the economic outlook as "uncertain" and stating that risks to both sides of its dual mandate were "roughly in balance."
The latest projections from the central bank suggest that interest rates will range between 3.75% and 4% by the end of 2025, compared to the previous forecasted range of 3.25% to 3.5% in September.
At present, the Canadian benchmark, the S&P/TSX Composite Index, has declined by 197 points, or 0.79%, to stand at 24,922.71.
Sectors such as materials, communications, real estate, and utilities have been notably underperforming, while consumer discretionary, financials, and technology stocks are also generally weak.
Among the notable decliners, Hut 8 Corp (HUT.TO) has fallen by 5.4%. Other companies such as Bombardier Inc (BBD.B.TO), Telesat Corporation (TSAT.TO), Brookfield Infrastructure (BIPC.TO), Propel Holdings (PRL.TO), Linamar Corporation (LNR.TO), Shopify Inc (SHOP.TO), and Newmont Corporation (NGT.TO) have dropped between 2% and 4%.
Additional companies experiencing losses include CCL Industries (CCL.A.TO), Rogers Communications (RCI.B.TO), Premium Brands Holdings Corporation (PBH.TO), BRP Inc (DOO.TO), Dollarama Inc (DOL.TO), Agnico Eagle Mines (AEM.TO), Colliers International (CIGI.TO), AtkinsRealis (ATRL.TO), and Onex Corporation (ONEX.TO), with declines ranging from 1% to 1.9%.
Organigram Holdings Inc. (OGI.TO) has decreased by over 3%. The company revealed a narrower net loss for the fourth quarter, owing to heightened revenue and reduced costs. For the three-month period ending September 30, the company recorded a net loss of C$5.433 million, improving from a loss of C$26.595 million in the same period the previous year.
Conversely, Torex Gold Resources (TXG.TO) is experiencing a gain of nearly 11%. GFL Environmental (GFL.TO) has risen by 3.75%, while Boralex (BLX.TO), Pet Valu Holdings (PET.TO), Toromont Industries (TIH.TO), Canadian Pacific Kansas City (CP.TO), and Aritzia Inc (ATZ.TO) are up between 1% and 2.3%.
Canadian Western Bank (CWB.TO) is up by more than 1%, despite reporting lower earnings for the fourth quarter. The bank reported a fourth-quarter net income of $62 million and an adjusted EPS of $0.67, reflecting a decrease of 19% and 29%, respectively, compared to the same quarter last year.
The material has been provided by InstaForex Company -
www.instaforex.com
