The Canadian stock market exhibited a continued downturn on Monday, marking its third consecutive session of losses. This decline is attributed to the weakening prices of oil and gold, which negatively impacted the energy and materials sectors. Additionally, stocks in the communications sector also recorded significant losses.
Investor sentiment remained cautious ahead of the Federal Reserve's upcoming monetary policy announcement and the release of crucial economic indicators. Investors are particularly focused on reports detailing Canadian inflation and retail sales, along with U.S. inflation data.
The S&P/TSX Composite Index concluded the session with a decline of 127.09 points, representing a 0.5% drop, closing at 25,147.21.
The Energy Capped Index fell by 1.82%, with Baytex Energy (BTE.TO) dropping approximately 5%. Other notable losers in this sector included Veren Inc (VRN.TO), Vermilion Energy (VET.TO), Birchcliff Energy (BIR.TO), Kelt Exploration (KEL.TO), Arc Resources (ARX.TO), Cenovus Energy (CVE.TO), Tourmaline Oil Corp (TOU.TO), and Precision Drilling Corporation (PD.TO), all of which saw declines ranging from 2% to 3%.
Within the materials sector, Algoma Steel Group (ASTL.TO), First Quantum Minerals (FM.TO), Orla Mining (OLA.TO), Silvercrest Metals (SIL.TO), K92 Mining (KNT.TO), and Teck Resources (TECK.B.TO) experienced losses between 3% and 4.5%. Other significant decliners included Nutrien (NTR.TO), Barrick Gold Corp (ABX.TO), Ivanhoe Mines (IVN.TO), and Lundin Mining (LUN.TO).
The communications sector also suffered, with BCE Inc (BCE.TO) closing down by 6.25%, Rogers Communications (RCI.B.TO) down 4.4%, and Cogeco Communications (CCA.TO) and Quebecor (QBR.B.TO) decreasing by 2.2% and 1.49%, respectively.
On the upside, Hut 8 Corp (HUT.TO) surged nearly 6.5%. Aritzia Inc (ATZ.TO), Jamieson Wellness (JWEL.TO), Brookfield Asset Management (BAM.TO), ATCO Ltd. (ACO.Y.TO), TerraVest Industries (TVA.TO), Boyd Group Services (BYD.TO), GFL Environmental (GFL.TO), and Toromont Industries (TIH.TO) showed gains ranging from 1.5% to 2.7%.
In economic developments, data from the Canada Mortgage and Housing Corporation revealed that housing starts in Canada increased by 8.4% month-over-month in November, reaching 262,400 units—the highest level observed in four months.
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