Despite recent data indicating a further decline in Canada's consumer price inflation, the stock market experienced a downtrend on Tuesday morning, primarily due to a substantial decrease in energy stocks as crude oil prices sharply fell. However, the market's downturn was moderated by robust purchasing activity in sectors such as healthcare, utilities, communications, and real estate.
The benchmark S&P/TSX Composite Index initially dropped to 24,357.87, losing over 110 points. It gradually rebounded, and about 30 minutes past noon, it showed a slight increase of 6.03 points, or 0.02%, to reach 24,477.20.
Statistics Canada reported that the annual inflation rate dropped to 1.6% in September, down from 2% in the previous month, marking the lowest level since February 2021. The consumer price index decreased by 0.4% in September compared to the prior month.
Meanwhile, the annual core inflation rate inched up to 1.6% in September from a 3-1/2-year low of 1.5% in the previous month. On a monthly basis, core consumer prices remained unchanged after falling by 0.1% the month before.
In a separate report, Statistics Canada revealed that wholesale sales in Canada fell by 0.6% month-over-month to $81.9 billion in August. This decline was less severe than preliminary estimates of a 1.1% drop and followed a downwardly revised 0.3% rise in July.
The Energy Capped Index decreased by 4.27%, as numerous stocks in the sector saw sharp declines due to oil prices plummeting nearly 5% amid reports that Israel assured the U.S. it wouldn't target Iran's oil or nuclear sites.
Notably, shares of International Petroleum Corp (IPCO.TO) fell by more than 7%. MEG Energy (MEG.TO), Baytex Energy (BTE.TO), Kelt Exploration (KEL.TO), Vermilion Energy (VET.TO), Headwater Exploration (HWX.TO), Cenovus Energy (CVE.TO), Nuvista Energy (NVA.TO), Suncor Energy (SU.TO), and Canadian Natural Resources (CNQ.TO) experienced declines ranging from 4% to 7%.
In the technology sector, Celestica Inc (CLS.TO) suffered a near 4% drop. Coveo Solutions (CVO.TO) decreased by 3%, while Dye & Durham (DND.TO), Constellation Software (CSU.TO), and Shopify Inc (SHOP.TO) fell by 1% to 2%.
Conversely, Atco Ltd. (ACO.Y.TO) posted a significant gain of 13%. MTY Food Group (MTY.TO), Dayforce (DAY.TO), Agnico Eagle Mines (AEM.TO), Bombardier Inc (BBD.B.TO), Descartes Systems Group (DSG.TO), RB Global (RBA.TO), Waste Connections (WCN.TO), WSP Global (WSP.TO), and Thomson Reuters Corporation (TRI.TO) registered gains ranging from 1% to 4.5%.
