Energy, Financial Shares Dragging Down Canadian Market

(RTTNews) – The Canadian stock market is down in negative territory with investors largely making cautious moves, reacting to earnings news from across the border, and following updates about coronavirus relief talks and global economic data.

Information technology stocks are finding good support. Telecom and industrial shares are among the other notable gainers. Energy, materials, financial and consumer discretionary shares are weak.

The benchmark S&P/TSX Composite Index is down 76.41 points or 0.46% at 16,486.40 about a quarter past noon. The index, which edged up to 16,569.88 at the start, fell to a low of 16,449.83 subsequently.

In the energy section, Enerplus Corp (ERF.TO), Vermilion Energy (VET.TO), Crescent Point Energy (CPG.TO), Parex Resources (PXT.TO), Suncor Energy (SU.TO), MEG Energy (MEG.TO) and Cenovus Energy (CVE.TO) are down 3 to 5%.

Methanex Corp (MX.TO), Teck Resources (TECK.B.TO), Osisko Gold Royalties (OR.TO), Canfor Corp (CFP.TO), Novagold (NG.TO), Hudbay Minerals (HBM.TO) and Agnico Eagle Mines (AEM.TO) are among the prominent losers in the materials space. These stocks are currently down 2.5 to 4%.

In the financial space, CDN Western Bank (CWB.TO), National Bank of Canada (NA.TO), Fairfax Financial Holdings (FFH.TO), Toronto-Dominion Bank (TD.TO), Manulife Financial (MFC.TO), Laurentian Bank (LB.TO) and Sun Life Financial (SLF.TO) are down 1 to 2.5%.

Consumer discretionary shares Canada Goose Holdings (GOOS.TO), Spin Master (TOY.TO) and Magna International (MG.TO) are down sharply.

Technology stock BlackBerry (BB.TO) is up nearly 10%. Absolute Software (ABT.TO) is rising 5.7% and Docebo Inc. (DCBO.TO) is gaining about 4.5%. Enghouse Systems (ENGH.TO) and Kinaxis Inc. (KXS.TO) are up 2.5% and 1.6%, respectively.

Air Canada (AC.TO) has slashed its price to buy Canadian tour operator Transat A.T. Inc (TRZ.TO), to about C$188.7 million ($143.86 million), down from C$720 million, as COVID-19 weighs on travel demand, the companies said in a statement on Saturday.

Shares of Air Canada are down by about 1.7%, while those of Transat Inc. are soaring nearly 25%.

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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