Canadian Market Deep Down In Negative Territory; Energy, Materials Shares Fall

(RTTNews) - The Canadian market is deep down in negative territory Tuesday afternoon due to heavy selling in stocks from across various sectors amid rising fears about a possible recession.

Sharply lower crude oil and gold prices are weighing on energy and materials shares. Shares from financials sectors are also down sharply.

The benchmark S&P/TSX Composite Index, which tanked to 18,520.38, is down 404.59 points or 2.13% at 18,624.27.

The Energy Capped Index is down more than 9%. Paramount Resources (POU.TO), Nuvista Energy (NVA.TO), MEG Energy Corp (MEG.TO), Precision Drilling (PD.TO), Baytex Energy (BTE.TO), Enerplus Corp (ERF.TO), Crescent Point Energy (CPG.TO) and Vermilion Energy (VET.TO) are down 11 to 14%.

Whitecap Resources (WCP.TO), Cenovus Energy (CVE.TO), Canadian Natural Resources (CNQ.TO), Arc Resources (ARX.TO) and Suncor Energy (SU.TO) are also down with big losses.

The Materials Capped Index is down 5.6%. First Quantum Minerals (FM.TO), MAG Silver Corp (MAG.TO), K92 Mining (KNT.TO), Kinross Gold (K.TO), Equinox Gold Corp (EQX.TO), Pan American Silver Corp (PAAS.TO), Eldorado Gold (ELD.TO), Hudbay Minerals (HBM.TO), B2Gold Corp (BTO.TO), Methanex (MX.TO) and Nutrien (NTR.TO) are down 6 to 10%.

In the financials section, CDN Western Bank (CWB.TO), Sun Life Financials (SLF.TO), Fairfax Financial Holdings (FFH.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO) and National Bank of Canada (NA.TO) are down sharply.

With several stocks from the sector bouncing bank strongly and posting impressive gains, the Information Technology Capped Index is climbing 2.6%.

Hut 8 Mining Corp (HUT.TO) is soaring nearly 12%. Shopify Inc (SHOP.TO) is up 7.75%. Descartes Systems (DSG.TO), BlackBerry (BB.TO), Dye & Durham (DND.TO), Converge Technology Solutions (CTS.TO), Sierra Wireless (SW.TO) and Opex Text Corp (OTEX.TO) are gaining 2.5 to 4.5%. Kinaxis Inc (KXS.TO), Enghouse Systems (ENGH.TO) and Lightspeed Commerce (LSPD.TO) are also up with strong gains.

On the economic front, data from Statistics Canada showed the total value of building permits in Canada rose by 2.3% over the month to C$ 12.1 billion in May of 2022, following an upwardly revised 1% decrease in the prior month.