Canadian Stocks Exhibiting Weakness In Cautious Trade
(RTTNews) - The Canadian stock market opened lower Wednesday morning, tracking weak cues from Asian and European markets where stocks drifted lower amid uncertainty about Brexit and worries about global economic slowdown.
Data showing a drop in Canadian wholesale sales in the month of August, slightly lower earnings reported by Rogers Communications and a downward revision in 2019 earnings guidance by Canadian National Railway too weighed on sentiment.
The benchmark S&P/TSX Composite Index was down 35.30 points, or 0.22%, at 16,356.22 a little before noon, after advancing to 16,395.34 in early trades.
Telecommunications stock Rogers Communications Inc. (RCI.B.TO) plunged 7%. reported adjusted net income of $622 million, or $1.19 per share, for the quarter ended September 2019, compared to net income of $625 million, or $1.21 per share, in the year-ago quarter.
BCE Inc. (BCE.TO) and Telus Corp (T.TO) shed 2.5% and 2.4%, respectively. Shaw Communications (SJR.B.TO) lost about 2%, while Cogeco Communications (CCA.TO) and Qubecor Inc. (QBR.B.TO) were lower by 1.6% and 1.4%, respectively.
Canadian National Railway (CNR.TO) shares were down by about 0.8%. The company reported a net income of $1.2 billion for the quarter ended September 30, up 0.5% over its net income in the year-ago quarter. The company has cut its profit outlook for 2019, saying a weaker economy has eroded rail demand.
SNC-Lavalin (SNC.TO), which ended with a hefty gain on Tuesday, was down 1.6% on profit taking. Badger Daylighting (BAD.TO) declined 2.1%.
Tracking higher gold prices, shares from the materials space moved up. Yamana Gold (YRI.TO), First Majestic Silver Corp (FR.TO), Eldorado Gold (ELD.TO), Agnico Eagle Mines (AEM.TO), B2Gold Corp (BTO.TO) and Alamos Gold Inc. (AGI.TO) gained 2 to 3%.
Iamgold (IMG.TO), Norbord Inc. (OSB.TO), Alacer Gold Corp (ASR.TO), Methanex (MX.TO), Wheaton Precious Metals (WPM.TO), Kinross Gold (K.TO), Franco-Nevada Corp (FNV.TO), Kirkland Lake Gold (KL.TO) and Novagold (NG.TO) also posted strong gains.
Among energy shares. MEG Energy (MEG.TO), Cenvous Energy (CVE.TO), Baytex Energy (BTE.TO), Vermilion Energy (VET.TO) and Encana Corp (ECA.TO) were up with sharp to moderate gains.
Among bank stocks, Royal Bank of Canada (RY.TO) declined 1.1%. CDN Western Bank (CWB.TO) and Laurentian Bank (LB.TO) were modestly lower, while Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) edged up marginally.
In economic news, data from Statistics Canada showed Canadian wholesale sales declined 1.2% to $64.3 billion in August, largely offsetting the 1.4% gain in July.
U.S. stocks were turning in a mixed performance amid lackluster moves with investors digesting the latest batch of earnings news from big-name companies like Boeing (BA) and Caterpillar (CAT).
Asian and European stocks too turned in a mixed performance today.
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