TSX ends down 113.97 points, or 0.6%, at 20,606.42
Shopify tumbles on slowing revenue forecast
Cenovus Energy drops as Jon McKenzie named CEO
(Adds investor quotes and details throughout; updates prices)
By Fergal Smith
Feb 16 (Reuters) – Canada’s main stock index fell on Thursday, tracking declines on Wall Street as U.S. economic data fanned worries the Federal Reserve will continue to raise interest rates, while Shopify led losses after its revenue forecast disappointed investors.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 113.97 points, or 0.6%, at 20,606.42, extending this month’s sideways pattern after notching a near eight-month high at the end of January.
Wall Street also lost ground as monthly producer prices accelerated in January and the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.
“We have seen a continuous decline in year-over-year inflation but the declines aren’t as big as the market has been anticipating,” said Philip Petursson, chief investment strategist at IG Wealth Management.
“That is starting to send signals that maybe the Fed is not going to be done (hiking) in March. Maybe they will have to go further and what does that mean for valuations?”
Shares of e-commerce giant Shopify Inc slumped 15.5% as the technology company forecast slowing revenue growth for the current quarter.
“I think it is one more example of a (technology) company that the market got a little bit ahead of itself and now we are seeing a pullback given the reality of the results,” Petursson said.
Technology has been on a tear since the start of the year after falling sharply in 2022. The sector fell 5.2% on Thursday, while energy ended 1.6% lower as the price of oil settled down 0.1% at $78.49 a barrel.
Cenovus Energy named Chief Operating Officer Jon McKenzie as its next president and chief executive, as Canada’s second-largest oil and gas producer swung to a fourth-quarter net profit from a loss last year.
Its shares ended 4.5% lower. (Reporting by Fergal Smith: Additional reporting by Shristi Achar A in Bengaluru; Editing by Maju Samuel and Alistair Bell)