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TSX Ends Sharply Lower On Inflation Worries

The Canadian market ended sharply lower on Wednesday, weighed down by sharp losses in energy and materials sections.

Several stocks from consumer staples, healthcare and financials shares were among the other major losers. A few stocks from technology, utilities and industrials sectors posted notable gains.

Stocks fell amid worries about rising inflation and tighter policies by central banks. Data released by Statistics Canada showed Canada's annual inflation quickened to 7.7% in May of 2022, the highest since January 1983 and above market expectations of 7.4%. The Consumer Price Index in Canada increased 1.4% in May of 2022 over the previous month.

Core consumer prices in Canada increased a record 6.1% year-on-year in May of 2022, above 5.7% in April and forecasts of 5.9%. On a monthly basis, consumer prices increased 0.8% in April, accelerating from a 0.7% rise in the prior month.

The benchmark S&P/TSX Composite Index, which plunged to a low of 18,871.70, ended the session with a loss of 253.25 points or 1.32% at 19,004.04.

Teck Resources (TECK.B.TO), Empire Company (EMP.A.TO), First Quantum Minerals (FM.TO), Precision Drilling Corporation (PD.TO), Finning International (FTT.TO) and Paramount Resources (POU.TO) lost 7.7 to 9.5%.

Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Methanex Corporation (MX.TO), Imperial Oil (IMO.TO), Tourmaline Oil Corp (TOU.TO), goeasy (GSY.TO), West Fraser Timber (WFG.TO), Canadian Tire Corporation (CTC.A.TO) and Constellation Software (CSU.TO) shed 1.2 to 5.2%.

Docebo Inc (DCBO.TO) and Bombardier Inc (BBD.B.TO) gained 7.7% and 7.5%, respectively. Kinaxis Inc (KXS.TO), Shopify Inc (SHOP.TO), Boralex Inc (BLX.TO), Canadian Pacific Railway (CP.TO), Waste Connection (WCN.TO) and Colliers International Group (CIGI.TO) moved up 1 to 4%.

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