In midday trading on Wednesday, stocks in Toronto experienced a significant downturn. The Bank of Canada has chosen to maintain its main interest rate at 5%, following two consecutive rate increases in July and July. This decision was made in response to a shift in the economy towards a weaker phase and a decrease in labor-market pressures.
Sector Performance
The majority of sectors saw negative performance during this session. Process industries, tech, and industrial services were hit the hardest, while consumer durables and commercial services managed to post slight gains.
Index Performance
At midday, Canada's S&P/TSX Composite Index was down 0.86%, reaching 20237.85. The blue-chip S&P/TSX 60 also experienced a decline of 0.93%, falling to 1211.90.
Enbridge Shares Drop After Acquisition Announcement
Enbridge shares significantly declined by 5.2% to 45.67 Canadian dollars ($33.48) following the company's announcement of a $14 billion acquisition deal with utilities in the U.S. The acquired companies include the East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas and its related Wexpro companies.
Other Market Updates
Hammerhead Energy shares trading in Toronto saw a 7.4% increase, reaching C$15.76, after announcing expectations of higher daily oil production in 2023. This positive outlook stems from the company gaining better control over costs and performance.
Canada Nickel has secured a $12 million loan from precious metals merchant Auramet but experienced a 3.2% decrease in shares, falling to C$1.20.
