TSX Extends Losses To 5th Session, Sheds Nearly 1%

(RTTNews) - The Canadian market turned in another weak performance as stocks fell amid concerns tighter monetary policies from central banks could push the economy into a recession.

The Federal Reserve, which is scheduled to announce its monetary policy on Wednesday, is widely expected to raise interest rate 50 basis points. Analsysts at Goldman Sachs and JP Morgan Chase expect the Fed to raise interest rates by 75 basis points.

Stocks from almost all sectors reeled under selling pressure. Utilities, communications and energy stocks were among the most prominent losers. Real estate and technology stocks too ended mostly lower.

The benchmark S&P/TSX Composite Index, which dropped to a low of 19,435.02, ended the session with a loss of 194.05 points or 0.98% at 19,548.51, extending losses to a fifth session.

Bombardier Inc (BBD.B.TO) plunged more than 18%. Tourmaline Oil Corp (TOU.TO) shed about 6.5%. Precision Drilling (PD.TO), Kinaxis Inc (KXS.TO), BCE Inc (BCE.TO), Agnico Eagle Mines (AEM.TO), Shopify Inc (SHOP.TO) and Cargojet (CJT.TO) lost 2 to 5%.

Nutrien (NTR.TO), Goeasy (GSY.TO), Fairfax Financial Holdings (FFH.TO), Teck Resources (TECK.A.TO), Ritchie Bros. Auctioneers (RBA.TO), Thomson Reuters (TRI.TO) and Canadian National Railway (CNR.TO) were among the notable gainers in the session.

On the economic front, data from Statistics Canada said car registrations in the country decreased to 143,148 units in April from 144,597 units in the previous month.

Another data from Statistics Canada showed manufacturing sales in Canada rose by 1.7% from a month earlier to C$ 72.3 billion in April of 2022, slowing from an upwardly revised 3.5% advance in the previous month but faster than a preliminary estimate of 1.6%. It was the seventh straight month of growth in manufacturing sales.