The Canadian market retreats after a positive start

(RTTNews) – After rising in early trading, the Canadian market fell into negative territory towards the end of Tuesday morning, weighed down by losses in the consumer discretionary, healthcare and financials sectors.

Benefiting from rising commodity prices, energy and materials stocks rose, giving the market a good start. Encouraging GDP data also helped.

However, concerns over the Russian-Ukrainian conflict and worries about the impact of harsh sanctions imposed on Russia by Western countries weighed on the market.

The benchmark S&P/TSX Composite Index, which hit 21,213.26 in early trading, fell 148.95 points or 0.71% to 20,977.41 a few minutes before midday.

The consumer discretionary capped index is down about 2.1%. Magna International (MG.TO) fell 5.6%. Martinrea International (MRE.TO) is down nearly 3%, while Linamar Corp (LNR.TO), Canada Goose Holdings (GOOS.TO), Canadian Tire Corp (CTC.A.TO) and Restaurant Brands International ( QSR.TO) are down 1-2.5%.

Cronos Group (CRON.TO), Sienna Senior Living (SIA.TO), Tilray Inc (TLRY.TO) and Aurora Cannabis (ACB.TO), down 2.5-3%, are the big losers in the cannabis sector. health. Aurora Cannabis (ACB.TO) and Bausch Health Companies (BHC.TO) are down 2.2% and 1.7%, respectively.

In the finance section, Sun Life Financial (SLF.TO), Onex Corp (ONEX.TO), Goeasy (GSY.TO) and Manulife Financial (MFC.TO) are down 2.2 to 2.4 %. Toronto-Dominion Bank (TD.TO) is down 1.9% and Laurentian Bank (LB.TO) is down about 1.7%, while Canadian Western Bank (CWB. TO), Royal Bank of Canada (RY.TO) and Canadian Imperial Bank of Commerce (CM.TO) fell 1 to 1.4%. National Bank of Canada (NA.TO) is down 0.8%.

The Bank of Nova Scotia (BNS.TO) is down slightly. The bank reported adjusted net income of $2,758 million for the first quarter of this year, compared with $2,418 million in the year-ago quarter.

Bank of Montreal (BMO.TO) is up about 0.2%. The Bank reported net income of $2,933 million for the first quarter of the current fiscal year, a 45% increase over the same quarter last year. Adjusted net income was $2,584 million last quarter, up 27% from a year ago.

Energy stocks Parex Resources (PXT.TO), Tourmaline Oil Corp (TOU.TO), Vermilion Energy (VET.TO), Arc Resources (ARX.TO) and Enerplus Corp (ERF.TO) gained 3-4%. Whitecap Resources (WCP.TO), Suncor Energy (SU.TO), PrairieSky Royalty (PSK.TO) and Crescent Point Energy (CPG.TO) are also up sharply.

Among materials stocks, Pan American Silver Corp (PAAS.TO), Iamgold Corp (IMG.TO), Silvercrest Metals (SIL.TO), Ssr Mining (SSRM.TO), Osisko Gold Royalties (OR.TO) and Wheaton Precious Metals (WPM.TO) gained 4.5-7%.

Data released by Statistics Canada this morning showed the Canadian economy grew 1.6% in the fourth quarter of 2021, the highest in 4 quarters and following a 1.3% expansion in the third quarter. The economy grew 4.6% in 2021, after contracting 5.2% in 2020.

The data indicates that the Canadian economy grew by 6.7% in the fourth quarter on an annualized basis, following an upwardly revised expansion of 5.5% in the third quarter of 2021.

The IHS Markit Canada manufacturing PMI hit a three-month high of 56.6 in February 2022, following a six-month low of 56.2 in January, marking the 20th consecutive monthly expansion.

Meanwhile, ADP data showed employment in Canada fell by 301,000 in January 2022, the most in 8 months.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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