The Canadian stock market closed slightly lower on Monday, influenced by declines in the utilities and technology sectors. Shares in the healthcare, consumer discretionary, and materials sectors also experienced weakness.
Investor sentiment was dampened by rising tensions in the Middle East. With important data releases, such as Canada's unemployment figures and the U.S. consumer price inflation report, scheduled for later in the week, traders remained cautious.
On the anniversary of the Hamas-initiated cross-border attack in Israel, Israeli defense forces escalated air strikes on Gaza and Beirut, Lebanon, marking a significant intensification of the Middle East conflict.
The S&P/TSX Composite Index finished the session down by 60.12 points or 0.25%, at 24,102.71, having reached an intraday low of 23,988.17 and a high of 24,173.06.
Energy stocks enjoyed a strong performance, driven by a sharp increase in oil prices due to escalating Middle Eastern tensions. Canadian Natural Resources surged 3.3% following its agreement to purchase Chevron's assets in Alberta for approximately US$6.5 billion (about C$8.775 billion).
Other notable gainers in the energy sector included Imperial Oil, Athabasca Oil Corp, International Petroleum Corp, Parex Resources, Whitecap Resources, Advantage Oil & Gas, and Baytex Energy, all rising between 2 to 3%.
Conversely, technology stocks suffered declines; Bitfarms and Sylogist fell by 5.5% and 3.1%, respectively. Additionally, Enghouse Systems, Quarterhill, Shopify Inc, BlackBerry, Descartes Systems Group, and Lightspeed Commerce recorded losses ranging from 1 to 3%.
In the utilities sector, Emera Incorporated experienced a nearly 5% drop. Meanwhile, Brookfield Renewable Energy and Innergex Renewable Energy decreased by 2.7% and 2.6%, respectively, with Hydro One, Northland Power, and Transalta Corp also among the significant decliners.
Reportedly, casualties in Gaza increased due to air strikes on a mosque and a repurposed school now serving as a refugee relief shelter. Gaza's Hamas-run health ministry stated that dozens were killed in these attacks, while the Israeli military claimed the sites were being used by Hamas militants.
