The Canadian stock market, which drifted lower Wednesday morning after the Bank of Canada announced its decision to hold interest rates unchanged and end the QE program, continues to languish in negative territory around mid afternoon.
The central bank maintained its benchmark rate at 0.25%, as expected, but terminated the quantitative easing program, reflecting the progress in the economic recovery from the crisis.
The bank said it is now moving into the reinvestment phase, during which it will purchase Government of Canada bonds to replace maturing bonds.
The bank now expects Canadian economy to grow by 5% this year before moderating to 4.25% in 2022 and 3.75% in 2023.
The Governing Council judged that in view of ongoing excess capacity, the economy continues to require considerable monetary policy support, according to the accompanying statement.
The BOC confirmed that it would hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. The bank estimates that this could happen in the middle quarters of 2022.
The benchmark S&P/TSX Composite Index is down 156.04 points or 0.74% at 21,017.41, after sliding to a low of 20,973.16.
Healthcare, consumer staples, energy and information technology stocks are down sharply. Several stocks from consumer discretionary, financial, industrials and utilities sections are also notably lower. Telecom stocks are finding some support.
Canfor Corp (CFP.TO) reported third-quarter net income of $210 million or $1.68 per share, compared with net income of $221.7 million or $1.77 crore in the year-ago quarter. The stock is down by about 1.6%.
Capstone Mining Corp (CS.TO) shares are declining 2.7%. The company reported adjusted net income of $35.3 million or $0.09 per share for the quarter ended 30 September 2021.
First Quantum Minerals Inc (FM.TO) is lower by more than 3%. The company reported comparative net earnings of $197 million or $0.29 per share for the third quarter of this financial year.
Teck Resources Limited (TECK.A.TO) is gaining nearly 2% after reporting adjusted EBITDA of $2.1 billion for the third quarter of this year, more than thrice the income it posted in the corresponding quarter last year.
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