August 12, 2020

The Toronto Stock Exchange suffers its worst losses since World War II

The Toronto stock exchange, TSX, suffered its worst losses since 1940, at the start of World War II, on Thursday, discounting 1,761 points, 12.3% of its value.

TSX, Canada’s largest stock exchange and one of the world’s largest for raw materials and the energy sector, closed the day at 12,508 points after temporarily suspending operations at the beginning of the day due to the magnitude of sales.

Since the Canadian parquet reached its highest point on February 20, the withdrawal of investors has erased 830 billion Canadian dollars (614.2 billion US dollars).

Thursday’s losses placed the Canadian stock market in 2016 values ​​and outpaced those of Wall Street, where the S&P 500 index cut its value 9.51% from its value.

All sectors of the Toronto parquet lost during the day and only one of the 230 companies in the index registered a small profit.

The day started in a dizzying way and after five minutes of operations TSX automatically suspended its operations at 9.35 local time (13.35 GMT), when it accumulated losses of 1,291.19 compared to the close on Wednesday, 9.05% of its value.

The 15-minute suspension is automatic when accumulated sales exceed 7% of the value. TSX has other suspensions implemented when losses accumulate 13 and 20% of the index value.

Until the market opened this Thursday, TSX had lost 20% of its value since the end of February, when the spread of the new coronavirus epidemic began to affect economic activity.

Canada is one of the main oil producers in the world and has one of the largest proven reserves of crude oil on the planet, so changes in the price of crude oil especially affect the Canadian economy.

In 2018, the last year with official figures, Canada produced 4.59 million barrels a day.


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