Markets

Update: TSX Little Changed as Gains in Energy Stocks Overshadowed by Losses in the Cannabis Sector

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Canada's main stock market was little changed Wednesday, tracking lower from modest opening gains and following a reversal on Wall Street as risk-off moves were again in the driver's seat. The S&P/TSX Composite Index was up 1 point to close at 15,133. U.S. markets were unable to hold on to early gains, with the Dow Jones losing 200 points or 0.6% and the S&P 500 falling 20 points or 0.6%. The Nasdaq shed 0.9%.

On the TSX, the energy sector led advancers, gaining 1% as oil snapped a record 12-session losing skid, settling at US$56.25 per barrel. Materials were also nearly 1% higher as precious metals increased, with gold up 0.7%. Healthcare led decliners, losing 5% as cannabis stocks fell based on disappointing earnings news from industry leader Canopy Growth. Financials were off 0.2%.

In stock news, Canopy Growth (WEED.TO) fell 11% after reporting wider-than-expected losses in its latest quarter. Loblaw (L.TO) was flat as its adjusted profits beat estimates. Tahoe Resources (THO.TO) jumped 48% after Pan American Silver (PAAS.TO) agreed to buy the Canadian miner in a friendly stock and cash deal valued at $1 billion. Heavily traded Aurora Cannabis (ACB.TO) shed 7% while Bombardier (BBD-B.TO) lost 2%.

There were no economic releases today in Canada. Existing home sales and the Teranet/National Bank home price index are out Thursday. Manufacturing shipments for September are due Friday along with international securities transactions.

The Canadian dollar traded in a narrow range today and was little changed at 75.52 US, down 4 basis points.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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