TSX Ends On Weak Note

(RTTNews) - The Canadian market ended notably lower on Wednesday after spending the entire session in negative territory as data showing an acceleration in inflation raised concerns the central bank might start hiking interest rates soon.

Dismal earnings guidance from Shopify Inc. and lingering concerns about tensions between Russia and Ukraine weighed as well on sentiment.

The benchmark S&P/TSX Composite Index, which dropped to a low of 21,344.73 around mid afternoon, ended the session with a loss of 118.91 points or 0.55% at 21,383.64.

Technology stocks were among the most prominent losers. The Capped Information Technology Index drifted down 3.89%.

Shopify Inc. (SHOP.TO) plunged more than 17%. For the fourth quarter ended Dec. 31, Shopify's revenue was $1.38 billion, compared with $977.7 million a year earlier. Analysts were expecting $1.33 billion, according to Refinitiv data.

The company expects revenue growth for 2022 to be lower than the 57% rise recorded in 2021.

"We believe that the COVID-triggered acceleration of ecommerce that spilled into the first half of 2021 in the form of lockdowns and government stimulus will be absent from 2022, and there is caution around inflation and consumer spend near term," the company said in a statement.

Lightspeed Commerce (LSPD.TO), Converge Technology Solutions (CTS.TO), Hut 8 Mining Corp (HUT.TO), Nuvei Corp (NVEI.TO) and Haivision Systems (HAI.TO) lost 2 to 4%. Kinaxis (KXS.TO) and Descartes Systems (DSG.TO) shed 1.98% and 1.77%, respectively.

Materials shares surged higher on firm metal prices. The Capped Materials Index climbed 1.82%. Barrick Gold Corp (ABX.TO) surged up more than 7%. Barrick Gold announced that its fourth-quarter net earnings more than doubled to $726 million or $0.41 per share from $347 million or $020 per share in the third quarter. Excluding items, adjusted net earnings for the quarter were $0.35 per share, compared to $0.24 per share in the previous quarter, the company said.

Oceanagold (OGC.TO) gained 8.3%. Yamana Gold (YRI.TO), Iamgold Corp (IMG.TO), B2Gold Corp (BTO.TO), Centerra Gold (CG.TO), Seabridge Gold (SEA.TO) and Silvercorp Metals (SVM.TO) advanced 3 to 3.6%.

Canada's annual core inflation rose to 4.3% in January of 2022, the highest since July of 1989, from 4% in the previous month.

Manufacturing sales in Canada were up 0.7% from a month earlier to C$ 64 billion in December of 2021, easing from an upwardly revised 3.1% rise in the previous month.

Wholesale sales in Canada rose by 0.6% month-over-month to C$76.2 billion in December of 2021, the fifth consecutive monthly increase.