Toronto market ends lower as Fed hikes interest rates
4:40 pm Wednesday, March 22nd, 2023
By Fergal Smith
(Reuters) -Canada’s benchmark stock index fell on Wednesday, giving back some of its gains in recent days, as investors assessed the Federal Reserve’s latest interest rate hike and signal that its tightening campaign is nearing an end.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 122.14 points, or 0.6%, at 19,532.78. On Tuesday, the index posted its highest closing level in one week.
Wall Street also ended lower after the Fed delivered a widely expected 25 basis point policy hike, while hinting it was on the verge of pausing future increases in view of recent turmoil in the financial sector.
“This is a Fed meeting that has gone pretty much on plan,” said Greg Taylor, a portfolio manager at Purpose Investments.
“People have been concerned about the banking system and that is something that we can move on from and maybe go back to looking at earnings which is the next big thing for the market to focus on.”
The energy group fell 1.4% even as a weaker U.S. dollar helped support oil prices. U.S. crude oil futures settled 1.8% higher at $70.90 a barrel.
Heavily weighted financials also lost ground, falling 0.8%, while technology ended 1.1% lower.
The materials group, which includes precious and base metals miners and fertilizer companies, was a bright spot. It climbed 0.8% as the price of gold rose.
Activist investor Engine Capital urged Parkland Corp to look at strategic options, including the sale or spinoff of non-core assets, to become a more focused fuel and convenience retailer, sending its stock 9.7% higher.
(Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Shweta Agarwal, Paul Simao and Richard Chang)
