TSX down as technology stocks weigh on index
Reuters
Published Feb 21, 2024 08:03
Updated Feb 21, 2024 16:52
(Reuters) - Canada's main stock index was dragged down on Wednesday by a drop in rate-sensitive technology stocks, as shares of the country's third biggest company, Shopify (TSX:SHOP), hit a six-week low and those of crypto miners fell.
The Toronto Stock Exchange's S&P/TSX composite index was down 45.15 points, or 0.2%, at 21,172.38.
Technology stocks led losses on the index with a 2.4% decline, dragged by crypto miners Hut 8 (TSX:HUT) and Bitfarms, down 3.9% and 7.0%, respectively, after Bitcoin lost 2%. Shopify shares were down nearly 4% at C$102.
In the United States, minutes from the Federal Reserve's January meeting showed the majority of policymakers were concerned about the risks of cutting interest rates too soon, with broad uncertainty about how long borrowing costs should remain at their current level.
After the release of the minutes, traders stuck to bets the Fed will begin cutting interest rates no earlier than June.
"Tech stocks are down and because from a technical perspective overall, there are definitely storm clouds," Selective Asset Management's Robert McWhirter said.
The materials sector, which includes Canadian miners, extended declines to a third consecutive session after it fell 0.9%. Gold miner Wheaton Precious Metals (TSX:WPM) lost the most among materials stocks, falling 8% after brokerages cut price targets on the stock due to underwhelming 2024 production forecast.
Insurance company iA Financial (TSX:IAG) Corp plummeted 8.6% to the bottom of the index after it reported its fourth-quarter profit below analysts' estimates. The stock pulled heavyweight financials down 0.6%.
Canada's main stock index is set to notch a record high in 2025 as the expected start of interest rate cuts by central banks bolsters the high-dividend paying stocks that make up much of the market, a Reuters poll found.
Among other stocks, shares of apparel-maker Gildan Activewear (TSX:GIL) climbed 3.7% after its fourth-quarter results beat analysts' estimates.
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Written By: Reuters
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