Losing Streak Resumes for Canadian Stocks| MENAFN.COM

Friday, 28 January 2022 04:54 GMT

Losing Streak Resumes for Canadian Stocks


(MENAFN- Baystreet.ca) Losing Streak Resumes for Canadian Stocks
Magna, First Capital Units in Vogue





The recent lows just keep getting lower for the TSX, amid jitters over a rise in cases of Omicron, the latest form of the coronavirus. Real-estate shares proved the main culprit Tuesday.
The S&P/TSX Composite stumbled 489.01 points, or 2.3%, to close Tuesday at 20,659.99.
The Canadian dollar was down 0.22 cents at 78.29 cents U.S.
As mentioned, real-estate was bruised the worst, primarily units of First Capital REIT, down 82 cents, or 4.5%, to $17.60, while CT REIT docked 77 cents, or 4.5%, to $16.54.
In energy concerns, Birchcliff Energy slid 49 cents, or 7%, to $6.50, while MEG Energy fell 53 cents, or 4.8%, to $10.42.
In consumer stocks, Spin Master spun lower $1.87, or 3.9%, to $46.34, while Magna International doffed $3.46, or 3.5%, to $96.91.
Only gold showed any light at the end of the tunnel, as Centerra Gold pointed upwards 43 cents, or 4.8%, to $9.48, while New Gold added nine cents, or 5%, to $1.90.
Ottawa Public Health said late on Monday that two more cases of Omicron were detected in the nation's capital, bringing Canada's total number of cases to five.
The Bank of Canada will work with indigenous groups to understand the wounds caused by decades of discrimination and determine how reconciliation can create a more inclusive and prosperous economy for all, Governor Tiff Macklem said on Monday.
Government officials in British Columbia on Monday extended restrictions on the use of fuel by residents, saying it was needed for emergency vehicles as the region recovers from devastating floods.
On the economic slate, Statistics Canada said gross domestic product edged up 0.1% in September as growth in services-producing industries more than offset a decline in goods-producing industries.
ON BAYSTREET
The TSX Venture Exchange fumbled 14.82 points, or 1.6%, to 939.44.
All but one of 12 TSX subgroups crumbled by the closing bell, with real-estate down 2.7%, energy fading 2.3%, and consumer discretionary stocks off 2.2%.
Gold proved the exception, up 0.1%.
ON WALLSTREET
Stocks tumbled Tuesday, reversing Monday's rebound on Wall Street, as investors reassessed risks associated with the new COVID variant, omicron.
The Dow Jones Industrials cratered 652.22 points, or 1.9%, to limp to the finish at 34,483.72, dragged down by losses in American Express and Salesforce.
The S&P 500 index docked 88.27 points, or 1.9%, to 4,567.
The NASDAQ dropped 245.14 points, or 1.6%, to 15,537.69.
Major averages dropped to their session lows after Federal Reserve Chairman Jerome Powell said the central bank will discuss speeding up bond-buying taper at its December meeting.
In an appearance before a Senate committee, the Fed chief said he thinks reducing the pace of monthly bond buys can move quicker than the $15-billion month schedule announced earlier this month.
Powell's comments suggest that the Fed's focus has now changed to fighting inflation and its negative impacts, rather than any more potential disruptions in economic activity from new variants of COVID.
Tuesday's reversal came after Moderna CEO Stephane Bancel told the Financial Times that he expects existing vaccines to be less effective against the new variant. The CEO told the paper there could be a“material drop” in the current vaccines' effectiveness against this variant. Bancel told reporters on Monday that it could take months to develop and ship an omicron-specific vaccine. Moderna was down 4.4%.
Separately, Regeneron said its antibody treatment may have reduced effectiveness against omicron.
Travel shares, which led Friday's drop and then gained Monday, were taking hits once again on Tuesday. Expedia Group fell 3.3%, Norwegian Cruise Line Holdings tumbled 3.5%, and Booking Holdings was off by 3.7%.
Bucking the broader market's trend were some tech stocks. Stay-at-home stock Netflix rose 1.4%, Apple rallied 1% and Tesla gained 1.5%.
Tuesday marked the final trading day of November, which proved to be a volatile month for stocks. The Dow lost 3.7% in November. The S&P 500 dropped 0.8% this month and the NASDAQ rose 0.25%.
Prices for 10-year Treasurys gained sharply, lowering yields to 1.44% from Monday's 1.53%. Treasury prices and yields move in opposite directions.
Oil prices plunged $3.33 to $66.62 U.S. a barrel.
Gold prices dipped 11 dollars to $1,774.200 U.S. an ounce.









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