Canada Stocks: TSX down as technology, mining stocks weigh; Fed minutes awaited

Alamos Gold

21/02/2024 16:01

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      TSX down 0.3% 
    

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      Technology shares plummet
    

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      iA Financial misses profit estimates; shares fall
    

  
 (Updated at 10:14 a.m. ET/ 1514 GMT)
    By Purvi Agarwal
       Feb 21 (Reuters) - 
    Canada's main stock index was dragged down on Wednesday by a
drop in mining and rate-sensitive technology stocks, while
investors remained cautious ahead of the minutes release from
the U.S. Federal Reserve's latest policy meeting.
  
        At 10:14 a.m. ET (1514 GMT), the Toronto Stock
Exchange's S&P/TSX composite index  .GSPTSE  was down 54.1
points, or 0.25%, at 21,163.43.
        Technology stocks  .SPTTTK  led losses on the index with
a 1.8% decline, dragged by crypto miners Hut 8  HUT.TO  and
Bitfarms  BITF.TO , down 3.9% and 7.0%, respectively, after
Bitcoin  BTC=  lost 2%.
    The materials sector  .GSPTTMT , which includes Canadian
miners, extended declines to a third consecutive session after
it fell 0.9%. Gold miner Wheaton Precious Metals  WPM.TO  lost
the most among materials stocks, falling 7.1% after brokerages
cut price targets on the stock due to underwhelming 2024
production forecast. 
    Insurance company iA Financial Corp  IAG.TO  plummeted 9.4%
to the bottom of the index after it reported its fourth-quarter
profit below analysts' estimates. The stock pulled heavyweight
financials  .SPTTFS  down 0.6%. 
    In the U.S., minutes from the Federal Reserve’s last policy
meeting, due at 2:00 p.m. ET, are on the radar for more details
on the timing of the interest rate cuts by the U.S. central
bank.
    Chip-maker Nvidia’s  NVDA.O  high-stakes earnings report,
which will set the expectations of an AI-fuelled rally this
year, also pressured Wall Street indexes, that opened lower on
Wednesday.  .N 
    "Nvidia earnings will be a big market mover after today, but
it looks like investors are a little jittery heading into the
number", said Allan Small, senior investment adviser of Allan
Small Financial Group with iA Private Wealth.
    "The Fed minutes could be a market mover if we learn that it
is delaying interest rate cuts even further down the road. I
think right now market is selling off slightly based on some
nervousness", he added. 
    Meanwhile, Canada's main stock index is set to notch a
record high in 2025 as the expected start of interest rate cuts
by central banks, a Reuters poll found. 
    Among other stocks, shares of apparel-maker Gildan
Activewear  GIL.TO  climbed 5.2% after its fourth-quarter
results beat analysts' estimates. 

 (Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi
Prakash Kumar)
 ((Purvi.Agarwal@thomsonreuters.com;))