Home Capital Group drops 64 per cent
While President Trump’s tax plans were big news for world markets, the talk of the TSX was a 64 per cent plunge in the stock of Home Capital Group which agreed a $2 billion credit line for its Home Trust subsidiary.
The slump dragged the financial sector group of the main TSX index down by more than 2 per cent while energy dropped more than 1 per cent as oil prices declined despite a large drop in US stockpiles.
Six sectors gained, led by telecoms and materials; gold prices stabilized after recent decline.
Wall Street closed lower despite the White House outlining tax plans that would cut income tax for individuals and slash the corporate rate from 35 to 15 per cent. However, a battle with Congress over some proposals are likely.
European and Asian markets closed mostly higher.
The S&P/TSX Composite Index closed down 95.65 (0.61 per cent)
The Dow Jones closed down 20.68 (0.10 per cent)
Oil is trending lower (Brent $51.54, WTI $49.27 at 4.25pm)
Gold is trending higher (1270.40 at 4.25pm)
The loonie is valued at U$0.7343
Binary options could be banned under new proposals
The advertising, offering, selling and trading of binary options could be banned in Canada.
A consultation by the Canadian Securities Administrators proposes that the transactions, sometimes known as digital options, all-or-nothing options, asset options, and other names; should be outlawed. Many of those offering the options are overseas companies.
“We are deeply concerned by the increasing number of investor losses and complaints resulting from binary options,” said Louis Morisset, Chair of the CSA and President and Chief Executive Officer of the Autorité des marchés financiers. “The proposed ban is critical to our efforts to help stop binary options fraud in Canada.”
Retail sales down from January gains
Lower sales at motor vehicle and parts dealers and gasoline stations, drove a decline in Canada’s retail sales in February, Statistics Canada reported Wednesday.
The 0.6 per cent decline to $47.8 billion followed a 2.3 per cent gain in January. Without the declines in the motor-related sectors, sales were up 0.5 per cent.
In volume terms, overall sales fell 0.1 per cent after removing the effects of price changes.