Canadian Market Drifting Lower On Weak Results, Growth Worries
(RTTNews) - The Canadian market faltered after an early uptick on Friday, as worries about global economic slowdown, U.S.-China trade deal uncertainty and doubts about the Brexit deal getting the approval of the U.K. lawmakers weighed on investor sentiment.
Worries about global economic outlook have increased after China reported disappointing GDP data Friday morning. The National Bureau of Statistics said China's economy grew at the slowest rate in nearly three decades in the third quarter, rising 6% year-on-year after rising 6.2% in the second quarter.
Stocks from healthcare, information technology and consumer discretionary sections tumbled on selling pressure.
Energy and materials stocks were also mostly struggling for support, while a few stocks from inudstrials and financial sections edged higher.
The benchmark S&P/TSX Composite Index, which advanced to 16,462.12 in early trades, was down 44.64 points, or 0.27%, 16,381.66, about half-an-hour past noon.
Aurora Cannabis Inc (ACB.TO), Hexo Corp (HEXO.TO), Canopy Growth Corporation (WEED.TO), Cronos Group (CRON.TO) and Aphria Inc. (APHA.TO) lost 3.7 to 6%. Green Organic Dutchman Holdings (TGOD.TO) declined more than 15%.
Encana Corp (ECA.TO), Organigram Holdings (OGI.TO), Baytex Energy (BTE.TO), Kinross Gold Corp (K.TO) and B2Gold Corp (BTO.TO) were down 1 to 5%.
Gildan Activewear Inc (GIL.TO) shares plunged nearly 25% after the company cut its 2019 guidance after warning its third quarter results will be lower due to weaker demand for imprintable apparel. The company said it expects earnings to drop by about 7% to 51 cents per share in the third quarter.
Corus Entertainment Inc. (CJR.B.TO) plummeted 11.6% after the company reported a substantial drop in earnings. Corus reported net income of $22.9 million or $0.11 per basic share for the third quarter ended August 2019, compared to net income of $156.1 million or $0.74 per basic share in the year-ago quarter.
Ballard Power Systems (BLDP.TO) gained more than 7%. Enerflex (EFX.TO) advanced 5.4% and Advanz Pharma Corp (ADVZ.TO) gained about 3.5%.
Waste Connections (WCN.TO), Norbord (OSB.TO) and Linamar Corporation (LNR.TO) were among the other notable gainers in the market.