TSX Snaps 4-day Winning Streak, Ends Moderately Lower

(RTTNews) - The Canadian stock market ended weak on Wednesday, snapping a four-day winning streak, as worries about inflation and speculation that the Fed might consider tapering its accommodative policy sometime soon weighed on sentiment.

Weak crude oil prices and spikes in coronavirus cases in Asian countries hurt as well.

Energy and materials shares were among the most prominent losers. Healthcare stocks were also weak. Information technology and utilities shares found support, while financial, real estate, telecom and industrials shares ended mixed.

The benchmark S&P/TSX Composite Index ended down by 90.02 points or 0.46% at 19,417.03, nearly 200 points off the day's low of 19,224.23.

The Capped Energy Index shed 3%. Vermilion Energy (VET.TO), Canadian Natural Resources (CNQ.TO), Suncor Energy (SU.TO), Parex Resources (PXT.TO) and Cenovus Energy (CVE.TO) lost 3.2 to 4.4%.

Materials shares Teck Resources (TECK.B.TO) and First Quantum Minerals (FM.TO) plunged 9.8% and 8.5%, respectively. Hudbay Minerals (HBM.TO) ended lower by 6.3%, while Ero Copper (ERO.TO), Oceanagold (OGC.TO), Silvercrest Metals (SIL.TO), Methanex Corp (MX.TO) and Lundin Mining (LUN.TO) lost 2 to 4.25%.

Healthcare stock Aphria Inc (APHA.TO) drifted down 5.6%. Canopy Growth Corp (WEED.TO), Organigram Holdings (OGI.TO), Aurora Cannabis (ACB.TO) and Aurinia Pharmaceuticals (ACP.TO) shed 1.5 to 2%.

Information technology stocks Shopify Inc (SHOP.TO) and Kinaxis Inc (KXS.TO) gained about 4% and 2.8%, respectively. Enghouse Systems (ENGH.TO) climbed 2.2% and Celestica Inc (CLS.TO) gained 1.65%.

Utilities shares Brookfield Renewable Partners (BEP.UN.TO), Boralex (BLX.TO), Innergex Renewable Energy (INE.TO), Capital Power Corp (CPX.TO) and Brookfield Infra Partners (BIP.UN.TO) ended with strong gains.

Shares of Canadian aviation training specialist CAE Inc. declined sharply after the company reported fourth-quarter net income of C$19.8 million or C$0.07 per share, lower than C$78.4 million or C$0.29 per share last year. However, the stock recovered as the session progressed and eventually closed with a loss of about 0.6%.

On the economic front, data released by Statistics Canada showed the inflation rate in Canada increased to 3.4% in April, after coming in at 2.2% in the previous month. Core inflation increased 2.3% in the month, over the previous month.