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.

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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