TSX Snaps 7-session Winning Streak, Ends Notably Lower

(RTTNews) - After seven successive days of gains, Canadian stocks drifted lower on Tuesday as worries about rising inflation and fears of tighter policy measures by the Federal Reserve and other central banks triggered selling at several counters.

The benchmark S&P/TSX Composite Index ended with a loss of 190.06 points or 0.91% at 20,729.34.

Data released by Statistics Canada before the opening bell this morning showed the pace of economic growth in Canada slowed in the first quarter compared with the end of 2021.

The data said real gross domestic product grew at an annualized rate of 3.1% in the first quarter, helped by business investment and household spending. That was down from an annualized rate of 6.6% in the fourth quarter of 2021 as export volumes dropped 2.4% for the quarter, following two consecutive quarterly increases, due in part to decreased trade in energy products.

Energy stocks were the major losers as oil prices turned weak on reports that some members of the Organization of the Petroleum Exporting Countries (OPEC) are in favor of suspending Russia's participation in an oil-production deal.

The Energy Capped Index dropped 2.77%. Imperial Oil (IMO.TO), Canadian Natural Resources (CNQ.TO), Vermilion Energy (VET.TO), Enerplus Corp (ERF.TO) and Suncor Energy (SU.TO) ended lower by 3 to 4.2%.

The Health Care Capped Index shed 1.55%. Bausch Health Companies (BHC.TO) ended lower by 5.3%, while Well Health Technologies (WELL.TO), Tilray Inc (TLRY.TO) and Aurora Cannabis (ACB.TO) lost 4.9%, 4.25% and 3.1%, respectively.

The Information Technology Capped Index also shed more than 1.5%. Hut 8 Mining Corp (HUT.TO), BlackBerry (BB.TO), Softchoice Corp (SFTC.TO), Converge Technology Solutions (CTS.TO), Magnet Forensics (MAGT.TO), Nuvei Corp (NVEI.TO) and Docebo Inc (DCBO.TO) ended lower by 4 to 8.1%.

The Materials Index drifted down 1.38%. Lithium Americas Corp (LAC.TO) tanked 14.6%. Stelco Holdings (STLC.TO), Fortuna Silver Mines (FVI.TO), Teck Resources (TECK.B.TO), Capstone Mining Corp (CS.TO) and Silvercrest Metals (SIL.TO) lost 5 to 6.5%.

Quebecor Inc (QBR.A.TO), Nutrien (NTR.TO), Linamar Corporation (LNR.TO), Colliers International Group (CIGI.TO), Open Text Corporation (OTEX.TO), Dollarama Inc (DOL.TO) and Kinaxis (KXS.TO) gained 1 to 4.5%.