Despite a noticeable upturn in the materials sector, the Canadian market concluded Monday on a non-positive note. This result was due primarily to a consistent selling trend that affected stocks in the healthcare, consumer staples, and energy sectors.
Investors showed hesitance in stock acquisition due to a lack of data. All eyes are on the Bank of Canada which is set to announce its monetary policy on Wednesday. Market observers widely believe the central bank will retain its benchmark rate at 5%.
The benchmark S&P/TSX Composite Index, which momentarily managed to shift into the positive range in the late afternoon, ultimately decreased by 21.28 points or 0.1%, closing at 21,531.07.
Within the healthcare sector, stocks from Bausch Health Companies and Tilray Inc both dropped nearly 3%. Energy stocks also witnessed a dip, with Baytex Energy down by 3.4%. Other stocks such as Africa Oil Corp, MEG Energy Corp, Shawcor and Canadian Natural Resources saw a decline ranging from 2 to 2.3%.
The North West Company Inc was the biggest underperformer in the consumer staples sector, witnessing a decline of nearly 4%. Saputo Inc and Jamieson Wellness noted a drop of 2.6% and 2.2%, respectively, while Loblaw Co, Metro Inc, and George Weston also ended on a noticeably lower note.
Amidst the overall downswing, the Materials Capped Index saw a rise of 2.1%, driven by robust bullion prices which sparked substantial buying interest in the sector. Mining and precious metals companies such as Torex Gold Resources, Seabridge Gold, First Quantum Minerals, First Majestic Silver, Oceanagold Corp, Kinross Gold Corp, Lundin Gold, Equinox Gold Corp, and Eldorado Gold reported gains ranging from 5 to 7%.
