TSX Ends Sharply Lower On All-round Selling

(RTTNews) - The Canadian stock market plunged sharply on Friday as concerns about growth due to surging virus cases, tighter lockdown measures and delay in vaccine supplies weighed on sentiment.

The sell-off on Wall Street and European markets amid concerns over a huge surge in speculative trading from retail investors organized over online forums, such as Reddit, contributed as well to the bearish sentiment in the Canadian market.

The benchmark S&P/TSX Composite Index ended with a loss of 320.18 points or 1.81% at 17,337.02, after plunging to a low of 17,297.75. The Index shed 2.85% in the week.

Selling was so widespread that stocks from all the sectors tumbled. The Utilities Index, which slid 0.56%, suffered the least damage. Technology, consumer discretionary and industrial stocks declined sharply, dragging the respective sectoral indices down by 2.8%, 2.4% and 2.2%, respectively.

The Capped Energy Index shed 2.03% and the Healthcare Index lost nearly 2%. The Financial and Telecom Services indices tumbled 1.87% and 1.7%, respectively. The Materials Index slid 1.1%.

In economic news, data from Statistics Canada showed the Canadian economy grew 0.7% over a month earlier in November of 2020, following a 0.4% expansion in the previous month and compared to market expectations of a 0.4% gain. GDP rose for the seventh consecutive month following the biggest contraction on record in March and April.

Another data from Statistics Canada showed the industrial product price index in Canada rose 1.5% month-over-month in December of 2020, following a downwardly revised 0.5% drop in November. Year-on-year, producer prices were up 1.8%, compared to an earlier reading of a 1.5% rise.