Canadian Stocks Edge Lower As Investors Avoid Risk Assets Amid Escalating Gulf War

(RTTNews) - Extending yesterday's losses, Canadian stocks moved lower on Thursday, with the likelihood of an end to the Middle East war diminishing after Iran vowed for revenge and resolved to fight with full force. A war-triggered oil price surge supported energy-linked stocks, which limited losses to the index.

After opening below yesterday's close, today the benchmark S&P/TSX Composite Index gained ground early in the session but then lost momentum and traded below the flatline before settling at 32,840.60, down by 279.23 points (or 0.84%).

Two of the 11 sectors posted gains today, with the energy sector leading the pack.

With no clear sign of ending soon, the Middle East war entered day number 13, catapulting oil prices.

Iran continued to target commercial vessels of various nations and carried its missile and drone strikes on Arab neighbors.

In his first message to the public (read out by a news anchor on state television), Iran's new Supreme Leader Mojtaba Khamenei vowed to avenge those killed in Iran's war against the U.S.-Israeli joint forces.

Promising to obtain compensation from the "enemy" for the damages, Khamenei reassured Iranians that Iran will counter-attack to the same extent it suffered. Khamenei thanked Hezbollah and Houthi militants for their support.

Significantly, the new leader ruled that the closure of the Strait of Hormuz is a necessary tool to pressure Iran's enemies.

Khamenei also warned its neighboring Arab nations of severe attacks if they host U.S. military forces and demanded closure of the bases.

Ebrahim Zolfaqari, a spokesperson for Iran's Khatam al-Anbiya military command headquarters, had asked the world to be prepared for oil prices to hit around $200 per barrel.

The International Maritime Organization is set to hold an "extraordinary session" next week on March 18-19 in London to discuss the ongoing threats to global shipping in the Middle East, particularly around the Strait of Hormuz.

Following the Iranian drone strike that set fuel tanks on fire at Oman's port of Salalah and another attack on a Thailand cargo ship in the Strait of Hormuz, Iran conducted late-night attacks on two fuel tankers (Safesea Vishnu and Zefyros) in Iraqi waters.

Iran reportedly used explosive-laden boats, prompting Iraq to shut down its oil ports.

Iran's Islamic Revolutionary Guard Corps had threatened to inflict serious damages on any "economic centre and bank" associated with the U.S. and Israel and warned people to avoid being around a one-kilometer radius of these institutions.

Following this, Citigroup and Standard Chartered instructed their employees to work remotely. HSBC temporarily closed branches in Qatar.

The escalation of the conflict in the Middle East is continuing to push investors away from risk asset classes.

Meanwhile, aiming to deepen defence cooperation in the Arctic region, Canada's Prime Minister Mark Carney is visiting Norway.

Carney is participating in a trilateral meeting between Prime Minister Jonas Gahr Store and German Chancellor Friedrich Merz tomorrow.

Following this visit, Carney is scheduled to stop over in the U.K. to meet Prime Minister Keir Starmer.

Data released by Statistics Canada today revealed that building permits in Canada surged by 4.8% month-over-month to C$13.3 billion in January, following a downwardly revised 6.1% advance in the prior month.

While Canada's exports decreased 4.7% month over month to C$62.48 billion in January, imports decreased 1.1% month-on-month to C$66.1 billion in the same period.

Major sectors that gained in today's trading were Energy (2.10%) and Utilities (0.59%).

Among the individual stocks, Parex Resources Inc (3.63%), CND Natural Res (3.10%), Suncor Energy Inc (2.98%), and Capital Power Corporation (1.87%) were the prominent gainers.

Major sectors that lost in today's trading were Industrials (2.14%), Healthcare (2.01%), IT (1.52%), and Financials (1.42%).

Among the individual stocks, Mda Space Ltd (7.15%), Tfi International Inc (6.93%), Brookfield Business Partners LP (5.01%), and Bausch Health Companies Inc (6.51%) were the notable losers.

Methanex Corp (8.90%), Nfi Group Inc (6.61%), and Nutrien Ltd (6.23%) were among the prime market-moving stocks today.