TSX Ends Lower For 4th Session As Stocks Tumble On Recession Fears

(RTTNews) - Canadian stocks drifted lower on Thursday, extending recent losses, as worries about a global recession triggered another round of selling almost across the board.

Data showing contraction in manufacturing activity in China, Japan, the U.K., and the euro area, and rising concerns about aggressive interest rate hikes by the Federal Reserve and other central banks rendered the mood quite bearish.

Weak crude oil and gold prices took a toll of energy and materials shares. Shares from technology and healthcare sectors too closed notably lower.

The benchmark S&P/TSX Composite Index, which plunged to 18,986.19 intraday, ended the session with a loss of 188.09 points or 0.97% at 19,142.72, extending losses to a fourth session.

On the economic front, a reading of S&P Global Manufacturing PMI for the month of August is due at 9:30 AM ET. The S&P Global Canada Manufacturing PMI fell to 52.5 in July of 2022 from 54.6 in the previous month, marking the slowest growth rate in the sector since June of 2020.

Data from Statistics Canada showed the total value of building permits in Canada fell 6.6% over the month to C$ 11.2 billion in June of 2022, following an upwardly revised 1.5% drop in the prior month.

First Quantum Minerals (FM.TO) tanked nearly 10%. Sprott Inc (SII.TO) drifted down nearly 6%. West Fraser Timber (WFG.TO), Kinaxis Inc (KXS.TO), BRP Inc (DOO.TO), Descartes Systems (DSG.TO), Cargojet (CJT.TO) and Nutrien (NTR.TO) lost 2 to 4%.

Turquoise Hill Resources (TRQ.TO) soared nearly 14% after Rio Tinto Plc announced that it has reached an agreement to acquire the remaining around 49% stake in Turquoise Hill that it does not currently own for C$43 per share in cash. The deal values the Turquoise Hill minority share capital at approximately $3.3 billion.

Bausch Health Companies (BHC.TO) zoomed 10%. Belus Health Inc. (BLU.TO) gained 5.5% and Alimentation Couche-Tard (ATD.TO) advanced 4.1%.

GFL Environmental (GFL.TO), TFI International (TFII.TO), Ritchie Bros. Auctioneers (RBA.TO), Canadian Tire Corporation (CTC.A.TO) and George Weston (WN.TO) also ended notably higher.