TSX Recovers From Day's Lows, Still Ends More Than 1% Down

(RTTNews) - Despite staging a fairly good recovery after a sharp plunge, the Canadian market ended on a very weak note on Tuesday, as fears about a possible recession and looming interest rate hikes weighed on sentiment and rendered the mood very cautious.

Sharply lower crude oil prices took a toll of energy stocks. Stocks from the materials sector tumbled as well as bullion prices fell after the dollar surged higher.

The benchmark S&P/TSX Composite Index, which tanked to 18,520.38, losing more than 500 points, ended the session with a loss of 194.70 points or 1.02% at 18,834.16.

The Energy Capped Index tumbled 6.8%. Nuvista Energy (NVA.TO), Precision Drilling (PD.TO), Paramount Resources (POU.TO), Baytex Energy (BTE.TO) and MEG Energy (MEG.TO) lost 10 to 13%. Arc Resources (ARX.TO), Crescent Point Energy (CPG.TO), Vermilion Energy (VET.TO), Whitecap Resources (WCP.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO) and Suncor Energy (SU.TO) were among the other major losers in the sector.

The Materials Capped Index shed about 4.4%. Torex Gold Resources (TXG.TO), K92 Mining (KNT.TO), Kinross Gold Corp (K.TO), Equinox Gold (EQX.TO), Eldorado Gold (ELD.TO), Pan American Silver Corp (PAAS.TO), MAG Silver Corp (MAG.TO) and Methanex (MX.TO) lost 6 to 8.3%.

The Health Care Capped Index climbed 3.74%. Bausch Health Companies (BHC.TO) rallied 8.2%, Cronos Group (CRON.TO) climbed 7.5%, Aurora Cannabis (ACB.TO) gained 5.3% and Tilray Inc (TLRY.TO) surged 4.75%.

The Information Technology Index surged 3.64%. Hut 8 Mining Corp (HUT.TO), the top gainer in the sector, soared 12.3%. Shopify Inc (SHOP.TO) rallied nearly 10%. Descartes Systems Group (DSG.TO) and BlackBerry (BB.TO) gained 5.8% and 5.4%, respectively.

Telus International (TIXT.TO), Sierra Wireless (SW.TO), Converge Technology Solutions (CTS.TO), Opex Text Corp (OTEX.TO), Lightspeed Commerce (LSPD.TO), Dye & Durham (DND.TO), Kinaxis (KXS.TO) and Enghouse Systems (ENGH.TO) moved up 2.5 to 4%.

On the economic front, data from Statistics Canada showed the total value of building permits in Canada rose by 2.3% over the month to C$ 12.1 billion in May of 2022, following an upwardly revised 1% decrease in the prior month.