(RTTNews) - After an early upmove, the Canadian stock market pared gains and slipped into negative territory Thursday morning, weighed down by losses in energy, materials and technology sectors.
Concerns about interest rates following a hawkish outlook from the Federal Reserve, and weak commodity prices contributed to market's decline. The signing of an interim peace deal between the US and Iran helped limit the market's fall to some extent.
The benchmark S&P/TSX Composite Index was down 173.86 points or 0.49% at 34,951.25 about half an hour past noon. The index had climbed to 35,281.00 in early trades.
The Energy Capped Index fell 2.72% as energy stocks reeled under selling pressure following a decline in oil prices after Iran and the U.S. signed an 14-point interim peace plan, that includes the reopening of the Strait of Hormuz, a $300 million reconstruction program for Iran and the removal of all US sanctions.
Vermilion Energy, International Petroleum Corporation, Whitecap Resources, Kelt Exploration, Strathcona Resources, Baytex Energy, Paramount Resources, Canadian Natural Resources and Cenovus Energy drifted lower by 3%-5%.
The Materials Capped Index dropped about 2.3%. Abrasilver Resource Corp shed nearly 8%. Orla Mining, Methanex, Americas Gold & Silver, Aris Mining Corporation, Skeena Resources, Equinox Gold Corp., Silvercorp Metals, OceanaGold Corporation, OR Royalties and Torex Gold Resources shed 3%-6%.
The Information Technology Capped Index drifted down 2.1%. CGI Inc. dropped nearly 9%. Blackberry shed 5.6%. Constellation Software lost 4.7%, while Kinaxis, Open Text Corporation, Descartes Systems Group and Endhouse Systems declined 1%-3.7%.
Among the gainers, Toromont Industries soared nearly 17%. Interfor, Cineplex, Air Canada, Brookfield Renewable, Empire Company, Canfor, Badger Infrastructure Solutions, West Fraser Timber, CCL Industries, Mattr Corp., Canada Goose Holdings, EQB and Extendicare gained 2%-4%.
In economic news, producer prices in Canada increased 1.2% month-over-month in May, rising for a fifth consecutive month, but below a downwardly revised 1.6% in April and forecasts of 1.8%. Year-on-year, producer prices rose 13.6%, the most since June 2022, following an 11.1% rise in April.
Canada's raw materials prices rose 0.7% month-over-month in May, following a 2.6% increase in the previous month and below forecasts of a 1.1% rise. The raw materials price index rose 33.4% year-on-year.
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