Canadian Market Recovers From Early Setback

(RTTNews) - After a weak start and a subsequent sharp drop, the Canadian market recovered and pared most of its losses on Tuesday thanks to strong buying in consumer staples and communications stocks. Materials stocks tumbled, even as stocks from technology, energy and consumer discretionary sectors recovered well from early lows.

Worries about stretched tech valuations amid increasing investments in AI infrastructure, and fears of interest rate hikes by the Federal Reserve and a few other central banks contributed to market's sharp plunge this morning.

The benchmark S&P/TSX Composite Index, which tumbled to 34,584.58, losing over 400 points in the process, recovered to 35,059.81 before retreating to 34,914.31, down 87.87 points or 0.25% from previous close.

The Consumer Staples Index climbed 4.2%. Alimentation Couche-Tard soared 11.6%. Loblaw, Metro, Weston George and The North West Company gained 1.7%-2.3%.

Communications stocks BCE inc., Cogeco Communications, Telus Corporation and Rogers Communications gained 1%-1.5%.

In the materials sector, G Mining Ventures, Hudbay Minerals, 5N Plus, First Quantum Minerals, Americas Gold & Silver Corporation, Lundin Mining, Ero Copper, Discovery Silver Corp., Capstone Copper Corp., Avino Silver & Gold Mines, Aya Gold & Silver and Teck Resources shed 5%-8%.

Cascades, Thomson Reuters, Open Text Corporation, Waste Connections, Lightspeed Commerce, Constellation Software, Canadian Energy Services, Metro and Loblaw Companies gained 2.5%-6%.

Celestica, Mattr Corp., Finning International, Real Matters, Interfor, Magna International, Canopy Growth, Onex and Power Corporation of Canada declined sharply.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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