Toronto-listed stocks decline amid Bank of Canada apprehension

By Adriano Marchese

Toronto-listed stocks were firmly lower mid-trading on Thursday following the Bank of Canada's cautious stance on cutting rates too soon. The central bank expressed apprehension, stating that the "last stretch of the inflation fight is fraught with risks."

Market performance

In the session, most sectors experienced losses, with the largest declines observed in the tech sector, followed by communications and producer manufacturing. However, there were a few gainers, with energy and retail leading the way.

• Canada's S&P/TSX Composite Index traded 0.63% lower at 20,837.11.
• The blue-chip S&P/TSX 60 was down 0.50% to 1,258.21.

BCE announces workforce reduction

Shares in telecommunications giant BCE dropped by 4.1% to CAD 50.91 ($37.81) as the company revealed plans to cut its workforce by 9%, amounting to 4,800 employees. This move is part of BCE's transformation strategy and aims to reduce costs. In the fourth quarter, BCE reported a decline in profit but achieved in-line revenue growth.

Other notable market movements

• Thomson Reuters' Toronto stock increased by 2.8% to CAD 206.60 as the company announced its targets for higher revenue growth in the coming years. The fourth quarter saw an increase in earnings, fueled by the rising value of Thomson Reuters' investment in the London Stock Exchange Group.
• Bombardier shares plummeted by nearly 14% to CAD 44.85 despite better-than-expected revenue growth in the fourth quarter. The company aims to deliver more aircraft and generate greater revenue in 2024 compared to 2023.
• Cineplex incurred a loss in the fourth quarter; however, revenue rose due to increased moviegoers. Shares were down 7.3% to CAD 7.61.
• Lightspeed Commerce's shares experienced an 18% decline, falling to CAD 21.58 in Toronto. The company remains cautious about near-term prospects despite surpassing expectations in its third quarter. Adjusted earnings and revenue exceeded predictions, and the company outperformed its own targets for adjusted earnings before interest, taxes, depreciation, and amortization.