On Tuesday, the Canadian market experienced one of its most significant declines in several months. This was primarily driven by concerns related to the country's growth and interest rate prospects, as well as weak commodity prices. This drop occurred just before the Federal Reserve's announcement regarding monetary policy.
The key S&P/TSX Composite Index closed 297.08 points, about 1.35%, lower at 21,714.54. The biggest drops were seen in the energy and materials sectors, with the capped indices for both experiencing declines of approximately 3%. Industries such as technology, industrials, and consumer staples also witnessed substantial losses.
Notable companies such as Ag Growth International, Cameco Corporation, Molson Coors Canada, Methanex Corporation, Precision Drilling Corporation, TFI International, goeasy, and Colliers International saw their share prices fall by between 2 to 7% each. Of these, Ag Growth International was hit the hardest, with share prices plummeting nearly 14%.
On the other hand, some companies experienced significant boosts. Canopy Growth Corporation saw an impressive surge of 80% in share prices. Similarly, Aurora Cannabis and Tilray Brands increased by 46.2% and 42% respectively.
Restaurant Brands International reported an increase of 3.6% after announcing their adjusted profit of US$ 331 million, or US$ 0.73 per share, for Q1 this year. This figure is slightly lower than last year's Q1 profit, which stood at US$340 million or US$0.75 per share.
Other companies such as Cargojet, CCL Industries, and Boyd Group Services also closed significantly higher.
Despite these financial shifts, data from Statistics Canada showed that the national economy grew only by 0.2% in February, a figure that falls short of the preliminary estimate of 0.4%. The preliminary estimation for March 2024 suggests that the Canadian economy is expected to remain unchanged.
