TSX Tumbles More Than 1% As Stocks Fall On Tariff Concerns

The Canadian stock market, after achieving a record high the previous day, opened slightly stronger on Friday morning. However, as the trading day progressed, the market lost momentum, affected by widespread selling across multiple sectors. This downturn followed the Trump administration's announcement to initiate a 25% tariff on Canadian imports starting February 1st.

U.S. President Donald Trump allegedly stated that Canada, along with Mexico and China, could not prevent these tariffs and hinted at additional tariffs on oil and gas, possibly commencing by February 18th.

Consequently, the S&P/TSX Composite Index closed with a decline of 275.15 points, equivalent to a 1.07% drop, settling at 25,533.10. Despite this decline, the index showed a weekly gain of 0.25%.

Sectors that suffered notable losses included energy, consumer discretionary, healthcare, materials, and industrials.

Imperial Oil (IMO.TO) saw a significant drop of 6.6% after reporting a decrease in its fourth-quarter net income to C$1.23 billion or C$2.37 per share, down from C$1.37 billion or C$2.47 per share in the previous year's quarter. Additionally, their total revenues for the quarter fell to C$12.61 billion from C$13.11 billion year-over-year.

Molson Coors Canada (TPX.A.TO) experienced a sharp decline of 9%, while Finning International (FTT.TO) ended the day down by 6.5%. Companies such as Propel Holdings (PRL.TO), BRP Inc (DOO.TO), MTY Food Group (MTY.TO), Russel Metals (RUS.TO), Magna International (MG.TO), and Linamar Corporation (LNR.TO) witnessed losses ranging from 4% to 5.1%.

Other stocks experiencing downturns included TFI International (TFII.TO), goeasy Ltd. (GSY.TO), Rogers Communications (RCI.B.TO), Toromont Industries (TIH.TO), Bombardier Inc (BBD.B.TO), Enbridge Inc (ENB.TO), and Docebo Inc (DCBO.TO), each closing 2% to 4% lower.

On a positive note, Celestica Inc (CLS.TO) surged by over 8%, with Boralex (BLX.TO), Northland Power (NPI.TO), VersaBank (VBNK.TO), Endeavour Mining (EDV.TO), and Quebecor Inc (QBR.TO) also recording significant gains.

According to Statistics Canada data, the country's real gross domestic product fell by 0.2% in November. However, preliminary estimates suggest a rebound in December, with the GDP projected to have grown by 0.2%.

The material has been provided by InstaForex Company - www.instaforex.com
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