Canadian Market Ends Notably Lower

(RTTNews) - The Canadian market ended with pronounced losses on Friday as stocks from materials, energy and healthcare sections tumbled on selling pressure. Several stocks from consumer discretionary sectors too closed notably lower.

Worries about likely monetary tightening by some central banks to rein in inflation, and the continued surge in coronavirus cases in several countries and fresh restrictions weighed on sentiment.

Weak bullion prices and worries about outlook for energy demand hurt as well.

The benchmark S&P/TSX Composite Index ended down by 198.18 points or 0.98% at 19,985.54, slightly off the day's low of 19,976.01. The index shed about 1.34% in the week.

The Capped Materials Index tumbled 3.38%. Turquoise Hill Resources Ltd. (TRQ.TO) shares plunged nearly 16% after the company said copper output fell 19% in the second quarter and gold production declined by 22%. The company said personnel shortages due to COVID-19 restrictions affected its mining operations during the second quarter.

First Quantum Minerals (FM.TO) shed 9.7%. MAG Silver Corp (MAG.TO), Interfor Corp (IFP.TO), First Majestic Silver Corp (FR.TO), Hudbay Minerals (HBM.TO) and B2Gold Corp (BTO.TO) lost 6 to 8%.

The Capped Energy Index drifted down 3.21%. Crescent Point Energy (CPG.TO), Vermilion Energy (VET.TO), MEG Energy (MEG.TO), Cenovus Energy (CVE.TO), Enerplus Corp (ERF.TO) and Canadian Natural Resources (CNQ.TO) closed lower by 3 to 5.4%.

The Healthcare Index shed nearly 3%. Organigram Holdings (OGI.TO) and Cronos Group (CRON.TO) both ended lower by about 4.75%. Aurora Cannabis (ACB.TO), Canopy Growth Corp (WEED.TO), Trillium Therapeutics (TRIL.TO), Tilray Inc (TLRY.TO) and Bausch Health Companies (BHC.TO) lost 2.8 to 4%.

Consumer discretionary stocks Sleep Country Canada Holdings (ZZZ.TO), Aritzia Inc (ATZ.TO), Magna International (MG.TO) and Gildan Activewear (GIL.TO) shed 2 to 3.5%.

FirstService Corporation (FSV.TO), Canadian Tire Corporation (CTC.TO), Colliers International (CIGI.TO), George Weston (WN.TO), Rogers Communications (RCI.A.TO), Thomson Reuters (TRI.TO), Ritchie Bros Auctioneers (RBA.TO) and Docebo Inc (DCBO.TO) were among the prominent gainers in the session.

In economic news, data released by Canada Mortgage and Housing Corporation showed the monthly SAAR of housing starts for all areas in Canada fell 1.5% from a month earlier to 282,070 units in June 2021. It was still up from market expectations of 270,000 units.

Data released by Statistics Canada said wholesale sales in Canada inched up 0.5% over a month to C$ 72.2 billion in May, the third straight monthly gain. However, the increase was smaller than the 1.1% rise market had expected.