TSX Ends Weak As Commodity Prices Drop
(RTTNews) - The Canadian stock market saw a couple of brief spells in positive territory Thursday morning, but spent much of the day's session in the red and finally settled modestly lower.
Weak crude oil and gold prices, and concerns over rising tensions between the U.S. and China rendered the mood cautious.
Materials and information technology shares were the prominent losers. Healthcare and consumer discretionary stocks were a bit sluggish. Energy stocks were mostly subdued, while financial and telecom stocks found some support.
The benchmark S&P/TSX Composite Index ended with a loss of 58.48 points or 0.35% at 16,731.49, after hitting a low of 16,650.52 and a high of 16,835.09 in the session.
Yamana Gold (YRI.TO), Kinross Gold Corp (K.TO), Barrick Gold Corporation (ABX.TO) and B2Gold Corp (BTO.TO) lost 2 to 4.7% on strong volumes.
Shopify Inc. (SHOP.TO) declined by about 3.75%. Maxar Technologies (MAXR.TO) lost about 7%, while Cargojet (CJT.TO), Methanex Corporation (MX.TO) and Wheaton Precious Metals (WPM.TO) ended lower by 3.3 to 3.7%.
MTY Food Group (MTY.TO) climbed 6.6%. Great Canadian Gaming Corp (GC.TO) gained about 6.5%. BRP Inc. (DOO.TO) surged up 3.85%. BRP Inc. said it earned $126.1 million or $1.43 per share in net income for the quarter ended July 31, up from $93.3 million or 96 cents per diluted share a year earlier.
Canadian Imperial Bank of Commerce (CM.TO) surged up nearly 2%. The bank announced that it posted a net profit of $1.17 billion or $2.25 per diluted share in the third quarter of this year, down from $1.4 billion or $3.06 per diluted share a year earlier.
Air Canada (AC.TO) rallied 4.2%. Bank of Nova Scotia (BNS.TO) and Sun Life Financial Inc. (SLF.TO) gained 1.5% and 1.3%, respectively.
According to data released by Statistics Canada this morning, Canada's current account deficit narrowed to C$8.63 billion in the second quarter from a revised C$13.22 billion deficit in the first quarter. Economists expected trade deficit to come in at C$12.2 billion.
The goods and services gap decreased by C$5.3 billion to C$7.9 billion, as the goods deficit fell by C$1 billion to C$7.7 billion as exports fell by an unprecedented C$33.2 billion to C$106.9 billion and imports were down by a record C$34.2 billion to C$114.5 billion, the data showed.
Meanwhile, average weekly earnings of non-farm payroll employees in Canada grew 9.4% year-on-year to C$1,119 in June of 2020, following a revised record 10.3% jump in the previous month.
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