The Canadian market experienced a notable decline on Thursday, retreating a day after reaching a record high. This downturn was largely due to a series of disappointing earnings reports and heightened concerns about future growth prospects, following weak economic data from both the U.S. and Europe.
Key sectors, including energy, materials, technology, financials, and industrials, saw significant losses.
The S&P/TSX Composite Index concluded the session at 22,723.21, marking a decline of 387.60 points or approximately 1.7%, representing the most substantial single-session drop in about five and a half months.
The Information Technology Capped Index saw a 3.38% drop. The Energy Capped Index decreased by nearly 3%, and the Materials Capped Index fell by 2%. Additionally, the Industrials and Financials Indexes declined by 1.74% and 1.62%, respectively.
Noteworthy declines included Cenovus Energy, Baytex Energy, Veren, Bitfarms, and Shopify Inc., which saw their shares fall between 4.6% and 5.9%.
Manulife Financial, Suncor Energy, and Air Canada recorded drops between 2.6% and 3.1%. Significant financial institutions such as Bank of Montreal, Royal Bank of Canada, Toronto-Dominion Bank, and Canadian Natural Resources experienced losses ranging from 1% to 1.5%.
On the economic front, the S&P Global Canada Manufacturing PMI decreased to 47.8 in July 2024, down from 49.3 in June. This marks the sharpest contraction in operating conditions since December and extends the period of decline to 15 consecutive months.
