Canadian Market Firmly Down In Negative Territory; Energy Shares Tumble
(RTTNews) - After opening with a negative gap, the Canadian stock market remains weak Monday morning, led by sharp losses in the energy space.
Rising worries about surging coronavirus cases across the world, fading optimism about a U.S. fiscal stimulus before the presidential election, and sharply lower crude oil prices are hurting the market.
The benchmark S&P/TSX Composite Index, which opened at 16,220.58, is down 132.00 points or 0.81% at 16,172.08
The Capped Energy Index is down more than 3%. Cenovus Energy (CVE.TO) is plunging more than 12%. Cenovus Energy Inc. (CVE.TO) and Husky Energy Inc. (HSE.TO) have agreed to merge in an all-stock transaction valued at C$23.6 billion, inclusive of debt. The combined company will operate as Cenovus Energy Inc. and remain headquartered in Calgary, Alberta. The transaction is expected to close in the first quarter of 2021. Husky Energy shares are rising more than 6%.
Vermilion Energy (VET.TO) is down 6.7%, Crescent Point Energy (CPG.TO) is declining 5% and Enerplus Corp (ERF.TO) is lower by 4.8%. Seven Generations Energy (VII.TO), Parex Resources (PXT.TO), Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Whitecap Resources (WCP.TO) and Tourmaline Oil Corp (TOU.TO) are down 2.5 to 4.5%.
Among consumer discretionary shares, Aritzia Inc. (ATZ.TO) and Canada Goose Holdings (GOOS.TO) are both lower by about 2.5%. Great Canadian Gaming Corp (GC.TO), Brp Inc. (DOO.TO) and Restaurant Brands International (QSR.TO) are down 1.8% and 1.7%, respectively.
In the industrial section, Air Canada (AC.TO) is lower by about 4.4%. Cae Inc. (CAE.TO), Westshore Terminals Investment (WTE.TO) and Exchange Income Corp (EIF.TO) are down 2.4 to 2.6%. Canadian National Railway (CNR.TO), Badger Daylighting (BAD), Canadian Pacific Railway (CP.TO) and Ballard Power Systems (BLDP.TO) are also sharply lower.
Celestica Inc. (CLS.TO), down 4.4%, is the most prominent loser in the technology space. Docebo Inc. (DBO.TO), Constellation Software (CSU.TO), BlackBerry (BB.TO), CGI Group (GIB.A.TO) and Opex Text Corp (OTEX.TO) are down 1.7 to 2.5%, while Shopify Inc. (SHOP.TO) is gaining about 0.8%.
Among financials, Sun Life Financial (SLF.TO), CDN Western Bank (CWB.TO), Manulife Financial (MFC.TO), Laurentian Bank (LB.TO), Toronto-Dominion Bank (TD.TO) and National Bank of Canada (NA.TO) are down 0.75 to 1.75%.
Gold stocks are finding support. New Gold (NGD.TO), Alamos Gold Inc. (AGI.TO), Iamgold (IMG.TO), Endeavour Mining (EDV.TO), Osisko Gold Royalties (OR.TO), Osisko Mining (OSK.TO) and Torex Gold Resources (TXG.TO) are gaining 1.5 to 2.5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.