Cannabis Shares Dragging Down TSX
(RTTNews) - After moving higher in early trades, Canadian stocks retreated and slipped into negative territory by mid morning and was down marginally at noon, as investors made cautious moves amid lingering uncertainty about U.S.-China trade deal and worries about global economic slowdown.
Cannabis shares plunged sharply, dragging the Capped Healthcare Index down by as much as 4.55%. Shares from utilities, materials, consumer discretionary and real estate sections found modest support, while rest of the sectors were subdued.
The benchmark S&P/TSX Composite Index, which advanced to 16,984.05 in early trades, was down 11.94 points, or 0.07%, at 16.946.05 a few minutes past noon.
Canopy Growth Corp. tumbled nearly 15.5% after the company's revenue fell by as much as 15%, the biggest decline since legalization, due to a $32.7 million charge from returned products.
Aurora Cannabis Inc. (ACB.TO) plunged 10% and Hexo Corp (HEXO.TO) shed nearly 7%. Aphria Inc. (APHA.TO) and Cronos Group Inc. (CRON.TO) lost 5.4% and 4.3%, respectively.
Enbridge Inc. (ENB.TO), Imperial Oil (IMO.TO), Quebecor Inc. (QBR.A.TO), Shopify Inc. (SHOP.TO) and CCL Industries (CCL.B.TO) lost 1 to 3.2%.
Cineplex (CGX.TO) and AutoCanada (ACQ.TO) gained 6.5% and 8%, respectively.
Bombardier Inc. (BBD.B.TO), B2Gold Corp (BTO.TO), MTY Food Group (MTY.TO), Canada Goose Holdings (GOOS.TO), Kirkland Lake Gold (KL.TO) and Canadian Tire Corporation (CTC.TO) gained 1 to 3.5%.
On the economic front, Statistics Canada said the new housing price index of Canada was up 0.2% nationally in September—the largest increase in two years.
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