The Canadian stock market is seeing one of its worst setbacks in several years, with shares plunging sharply Monday morning due to mounting concerns about the spread of the novel coronavirus outside China.
Energy stocks are tumbling following a sharp fall in crude oil prices amid concerns about the outlook for energy demand. Healthcare, information technology, industrial, financial and consumer discretionary stocks are among the other big losers.
The benchmark S&P/TSX Composite Index, which crashed to 17,463.11, is down as much as 273.93 points, or 1.54%, at 17,569.60 around noon.
The Capped Energy Index is down 4.16%. Enerflex (EFX.TO) is down more than 9%. MEG Energy (MEG.TO), Baytex Energy (BTE.TO), Enerplus Corp (ERF.TO), Whitecap Resources (WCP.TO), Vermilion Energy (VET.TO), Parex Resources (PXT.TO), Husky Energy (HSE.TO), Cenovus Energy (CVE.TO), Canadian Natural Resources (CNQ.TO) and PrairieSky Royalty (PSK.TO) are down 4 to 8%.
In the healthcare section, Cronos Group (CRON.TO) is down more than 7%, Aurora Cannabis (ACB.TO) is declining 6.7%, Canopy Growth Corporation (WEED.TO) and Hexo Corp (HEXO.TO) are lower by about 5.5%, Aphria Inc. (APHA.TO) is down 5% and Bausch Health Companies (BHC.TO) is declining 2.8%.
Among information technology stocks, Shopify Inc. (SHOP.TO) is down more than 5.5%. Blackberry (BB.TO) is down 4.3% and Absolute Software Corp (ABT.TO) is down 3.3%. Descartes Systems Group (DSG.TO), Kinaxis Inc (KXS.TO), Lightspeed Pos Inc (LSPD.TO) and Opex Text Corp (OTEX.TO) are down 2 to 4%.
In the financial space, Manulife Financial Corp (MFC.TO) is down more than 6%. Power Corporation of Canada (POW.TO), Sun Life Financial Inc. (SLF.TO), National Bank of Canada (NA.TO), Onex Corp (ONEX.TO), Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO) and Royal Bank of Canada (RY.TO) are down 1 to 3%.
On the economic front, data from Statistics Canada showed wholesale sales in Canada rose 0.9% over a month earlier in December, rebounding from a downwardly revised 1.1% fall in the previous month and beating market expectations of a 0.5% gain.
The sell-off in the Canadian market, and in fact, in markets across the globe on Monday, is due to rising concerns about the spread of the coronavirus amid a spike in the number of confirmed cases outside of China.
South Korea announced a total of 231 new coronavirus cases earlier today, leading the government to raise the coronavirus alert to its highest level.
A jump in confirmed coronavirus cases in Italy as well as new cases in Middle East countries like Iraq and Afghanistan has raised concerns about the outbreak escalating into a pandemic.
In commodities, West Texas Intermediate Crude oil futures for April are down $2.61, or nearly 5%, at $50.77 a barrel.
For comments and feedback contact: editorial@rttnews.com
Business News