(RTTNews) - Canadian stocks remain firmly down in negative territory a little past noon on Monday despite staging a modest recovery after a steep fall. Rising concerns about the impact of the ongoing conflict in the Middle East, and the resultant sharp surge in oil prices continue to deter investors from picking up stocks.
Oil prices skyrocketed with the front-month WTI contracts rising to $119.48 a barrel earlier in the day, following production cuts by major Middle Eastern producers—including Kuwait, Iran, and the United Arab Emirates—after the closure of the Strait of Hormuz.
Despite dropping to around $97.00, the contract remains high up with a near 5% gain.
According to reports, the UAE activated its advanced air defence systems to intercept incoming projectiles fired by Iranian forces.
Materials, consumer discretionary, real estate, financials and healthcare stocks are among the major losers. Energy stocks are up, riding on a sharp jump in oil prices.
The benchmark S&P/TSX Composite Index, which tumbled to 32,349.25, losing nearly 750 points in the process, was down 336.22 points or 1.02% at 32,747.30 a few minutes past noon.
Silvercorp Metals, Ssr Mining, Lundin Mining Corp., Discovery Silver Corp., New Gold, Nova Gold Resources, Aya Gold & Silver, Aris Gold Corporation, First Quantum Minerals and First Majestic Silver Corp, losing between 4% and 7%, are some of the big losers in the materials section.
Consumer discretionary stocks Gildan Activewear, Aritzia and Brp Inc. are down 4.8%, 3.7% and 3.2%, respectively. Magna International, Restaurant Brands International and Linamar Corp are also down sharply.
Among financials stocks, Igm Financial, Onex Corp., Sun Life Financial, Bank of Nova Scotia, Manulife Financial, Canadian Imperial Bank of Commerce and Power Corporation of Canada are down 2.3%-4%.
Healthcare stocks Curaleaf Holdings and Bausch Health Companies are down 5% and 2.5%, respectively.
Realty stocks H&R Real Estate Investment Trust, First Capital, Riocan Real Estate, Smartcentres Real Estate Investment and FirstService Corp are down 2%-4%.
Energy stocks Strathcona Resources, Arc Resources, Cenovus Energy, Advantage Oil & Gas, Baytex Energy, Enerflex and Suncor Energy are gaining 1.5%-4%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
