Canadian Market Down Marginally In Cautious Trade; Healthcare Stocks Rally
(RTTNews) - After a weak start and a subsequent rebound in positive territory Tuesday morning, the Canadian stock market struggled for support and faltered into the red again and continues to exhibit weakness nearly an hour past noon.
A sell-off in the energy section contributes to the market's decline. Financial shares are also exhibiting some weakness. Materials shares are off their highs, while healthcare stocks are up sharply. A few stocks from real estate section too are up with strong gains.
The benchmark S&P/TSX Composite Index, which rallied to 16,289.48 from an early low of 16,085.26, is down 17.93 points or 0.11% at 16,143.40.
The mood is cautious with investors reacting to news about spikes in coronavirus cases and U.S.-China tensions, and looking ahead to the upcoming monetary policy announcement from the Federal Reserve.
The Capped Energy Index is down more than 3%. MEG Energy (MEG.TO), down 6%, tops the list of losers. Vermilion Energy (VET.TO) is down 5.8% and Cenovus Energy (CVE.TO) is lower by 4.8%.
Enerplus Corp (ERF.TO), Suncor Energy (SU.TO), Crescent Point Energy (CPG.TO), Impeial Oil (IMO.TO), Canadian Natural Resources (CNQ.TO), Husky Energy (HSE.TO) and Parex Resources (PXT.TO) are down 1.7 to 4%.
Among the stocks in the Healthcare Index, Canopy Growth Corporation (WEED.TO) is soaring nearly 12%.
Aurora Cannabis (ACB.TO) is up 8.5% and Cronos Group Inc. (CRON.TO) is rising 7.3%. Bausch Health Companies (BHC.TO) and Aphria Inc. (APHA.TO) are up 6.2% and 5%, respectively. Sienna Senior Living (SIA.TO) is climbing 3.75% and Knight Therapeutics (GUD.TO) is advancing 2.5%, while Chartwell Retirement Residences (CSH.UN.TO) is gaining 1.35%. Hexo Corp (HEXO.TO) is up 3.2%.
Air Canada (AC.TO) is rising more than 3% on strong volumes. Bombardier Inc. (BBD.B.TO) is up nearly 3%, Shopify Inc. (SHOP.TO) is gaining 2.3% and Cogeco Communications (CCA.TO) is up 1.4%.
West Fraser Timber Co. Ltd. (WFT.TO) reported a net income of $48 million or 70 cents per share for the quarter ended June 30, compared with a loss of $58 million or 92 cents per share in the year-ago quarter. The stock is up by about 1.5%.
George Weston Ltd. (WN.TO) is down marginally after the company said it posted a loss of $255 million or $1.66 per share in the second quarter of this year, compared with a profit of $184 million or $1.19 per share in the second quarter of 2019.
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