The Canadian market experienced a notable decline on Tuesday, primarily impacted by setbacks in the energy, materials, and technology sectors. Lower commodity prices, apprehensions about global economic growth, and uncertainty around the trajectory of U.S. interest rate reductions contributed to the bearish sentiment.
The S&P/TSX Composite Index, which dipped to an intraday low of 22,976.55, ultimately closed down by 303.73 points, or 1.3%, at 23,042.45.
The Materials Capped Index decreased by 4.08%, with First Quantum Minerals (FM.TO) plummeting 13.8%. Lundin Mining Corp (LUN.TO) and Capstone Mining Corp (CS.TO) saw declines of 12.5% and 11.1%, respectively. Other prominent losers included Ivanhoe Mines (IVN.TO), Hudbay Minerals (HBM.TO), Aya Gold & Silver (AYA.TO), Teck Resources (TECK.B.TO), MAG Silver Corp (MAG.TO), Ssr Mining (SSRM.TO), Eldorado Gold (ELD.TO), Silvercrest Metals (SIL.TO), Kinross Gold (K.TO), and Filo Mining (FIL.TO).
The Energy Capped Index tumbled 3.03%, with International Petroleum Corp (IPCO.TO) losing 10%. Baytex Energy (BTE.TO) fell by 7.3%, while Veren Inc (VRN.TO), Vermilion Energy (VET.TO), Ces Energy Solutions (CEU.TO), Precision Drilling Corp (PD.TO), and MEG Energy (MEG.TO) posted losses between 5% and 6%.
The Information Technology Capped Index dropped 2.24%. Notable decliners included Bitfarms (BITF.TO), which plunged over 9%, and Celestica Inc (CLS.TO), which tumbled 8.25%. BlackBerry (BB.TO), Constellation Software (CSU.TO), Shopify Inc (SHOP.TO), Converge Technology Solutions (CTS.TO), and Tecsys Inc (TCS.TO) saw losses of 3% to 4%.
In the consumer discretionary sector, Brp Inc (DOO.TO) ended down 3.6%. Dollarama Inc (DOL.TO), Linamar Corp (LNR.TO), Aritzia Inc (ATZ.TO), Mty Food Group (MTY.TO), and Magna International (MG.TO) recorded declines between 2% and 2.5%.
Conversely, Molson Coors Canada Inc (TPX.B.TO) surged by 7.4%. Fortis Inc (FTS.TO), ATCO (ACO.Y.TO), Sun Life Financial (SLF.TO), and Canadian Pacific Kansas City (CP.TO) posted gains ranging from 1% to 1.8%.
On the economic front, the S&P Global Canada Manufacturing PMI increased to 49.5 in August 2024 from 47.8 in July, indicating the softest contraction in operating conditions since March and marking the 16th consecutive month of decline.
