The Canadian market is experiencing a significant downturn on Monday afternoon as stocks across multiple sectors suffer under persistent selling pressure. This is due to concerns over the Federal Reserve maintaining elevated interest rates following an unexpectedly large increase in U.S. non-farm payroll employment in December. Additionally, rising bond yields are negatively impacting stock performance.
Key sectors such as healthcare, materials, technology, and utilities are experiencing substantial losses, with energy stocks also declining considerably.
The S&P/TSX Composite Index stands down by 217.97 points or 0.88%, positioned at 24,549.76, with just an hour remaining before the market closes.
Ag Growth International (AFN.TO) has seen an 11% decrease after the company revised its earnings guidance downwards, citing reduced market activity and a weak order book.
Aritzia Inc (ATZ.TO) has dropped 5.4%, while MEG Energy (MEG.TO), Onex Corporation (ONEX.TO), Bombardier Inc (BBD.B.TO), Hut 8 Corp (HUT.TO), Capital Power Corporation (CPX.TO), Celestica Inc (CLS.TO), Sprott Inc (SII.TO), and Shopify Inc (SHOP.TO) report decreases between 3% to 5%.
Companies including ATCO Ltd. (ACO.Y.TO), Canadian Natural Resources (CNQ.TO), Agnico Eagle Mines (AEM.TO), Wheaton Precious Metals (WPM.TO), Franco-Nevada Corporation (FNV.TO), Bank of Nova Scotia (BNS.TO), and iA Financial Corporation (IAG.TO) show declines ranging from 1% to 3%.
Barrick Gold Corporation (ABX.TO) is down 1.7%, as the company advised shareholders to reject an unsolicited "mini-tender" offer from TRC Capital Investment for about 0.29% of its common stock, noting that the offer is below the market price.
In contrast, Veren Inc (VLN.TO) is up 9%, while Nutrien (NTR.TO), Parkland Corporation (PKI.TO), and Pason Systems (PSI.TO) have gained 4% to 5%.
BRP Inc (DOO.TO), Boyd Group Services (BYD.TO), Canadian Tire Corporation (CTC.A.TO), Pet Valu Holdings (PET.TO), Boralex (BLX.TO), Linamar Corporation (LNR.TO), and Toromont Industries (TIH.TO) have recorded increases of 1% to 2.5%.
Enerflex Ltd. (EFX.TO) is up by 1.6%. The company has stated that its Energy Infrastructure (EI) product line and After-Market Services are expected to contribute approximately 65% of the company's gross margin before depreciation and amortization. It projects that contracts in the EI product line will generate approximately $1.5 billion in revenue over their current terms, with a targeted capital expenditure of $110 million to $130 million slated for 2025.
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