TSX Ends Moderately Lower

(RTTNews) - The Canadian market ended weak on Wednesday, weighed down by losses in energy and technology sectors.

Investors digested the Bank of Canada's interest rate decision, and largely stayed cautious, looking ahead to crucial U.S. non-farm payroll report due on Friday.

The benchmark S&P/TSX Composite Index, which climbed to 20,492.06 after opening marginally up, ended down 101.72 points or 0.5% at 20,274.21, near the day's low.

The Bank of Canada today held its target for the overnight rate at a 22-year high of 5% as expected, keeping it unchanged for a third straight meeting.

Policymakers at the central bank noted that there are further signs that monetary policy is moderating spending and relieving price pressures, but voiced concerns about risks to the outlook for inflation. They said they are prepared to raise the policy rate if needed, and added that the bank is continuing its policy of quantitative tightening.

The Ivey Business School said the Ivey Purchasing Managers Index in Canada rose to 54.7 in November, up from a reading of 53.4 in October, and expanding for a fourth straight month. Economists had expected the index to rise to 54.2.

Data from Statistics Canada showed the labor productivity in Canada decreased by 0.8% in the third quarter of 2023, following a 0.1% decline in the prior period.

Meanwhile, Canada's trade surplus rose to C$ 2.97 billion in October, from the downwardly revised C$ 1.12 billion in the previous month. Exports increased 0.1% to C$ 65.98 billion, while imports declined by 2.8% to C$ 63 billion in October.

Hut 8 Corp (HUT.TO) plunged 11.5%. Canadian Natural Resources (CNQ.TO), Suncor Energy (SU.TO), Shopify Inc (SHOP.TO), Celestica Inc (CLS.TO), Precision Drilling Corp (PD.TO), Imperial Oil (IMO.TO) and Tourmaline Oil Corp (TOU.TO) ended lower by 2 to 6%.

Baytex Energy (BTE.TO) tanked 7.4%. Vermilion Energy (VET.TO), Africa Oil Corp (AOI.TO), MEG Energy (MEG.TO), Enerplus Corp (ERF.TO), Cenovus Energy (CVE.TO) and Imperial Oil (IMO.TO) lost 2 to 4%.

Utilities shares Brookfield Renewable Partners (BEP.UN.TO), Boralex (BLX.TO), Canadian Utilities (CU.TO), Northland Power (NPI.TO), AltaGas (ALA.TO) and Innergex Renewable Energy (INE.TO) gained 2.3 to 4.5%.

Communications shares Cogeco Communications (CCA.TO), Rogers Communications (RCI.B.TO) and Telus Corp (T.TO) gained 3%, 1.6% and 1.1%, respectively.