Canadian Market Remains Firmly Down In Negative Territory

(RTTNews) - The Canadian market is languishing in negative territory in early afternoon trades Wednesday, despite staging a fairly decent recovery after a sharp setback it suffered in early trades.

Worries about rising inflation and fears about monetary tightening moves by central banks, and reports showing continued surge in coronavirus cases in Asian countries are weighing on sentiment. Weak crude oil prices are hurting as well.

The benchmark S&P/TSX Composite Index, which plummeted to 19,224.23 in early trades, losing more than 280 points in the process, was down 89.54 points or 0.44% at 19,425.51 an hour past noon.

Energy, healthcare, consumer discretionary and materials shares are among the most prominent losers. Information technology, financial, industrials and telecom stocks are turning in a mixed performance.

Energy shares Vermilion Energy (VET.TO), Canadian Natural Resources (CNQ.TO), Suncor Energy (SU.TO), Cenovus Energy (CVE.TO), Imperial Oil (IMO.TO), MEG Energy (MEG.TO) and Parex Resources (PXT.TO) are down 2 to 3.3%.

Among materials shares, Teck Resources (TECK.B.TO) is declining 7.6%, First Quantum Minerals (FM.TO) is down 6.3% and Hudbay Minerals (HBM.TO) is drifting down 5.8%. Lundin Mining (LUN.TO), Oceanagold (OGC.TO), Methanex Corp (MX.TO) and Silvercrest Metals (SIL.TO) are among the other major losers in the section.

In the healthcare section, Aphria Inc (APHA.TO) is down 5.6%, while Organigram Holdings (OGI.TO), Aurora Cannabis (ACB.TO), Canopy Growth Corporation (WEED.TO) and Aurinia Pharmaceuticals (AUP.TO) are lower by 2.5 to 2.8%.

Linamar Corp (LNR.TO), Spin Master Corp (TOY.TO), Gildan Activewear (GIL.TO) and Brp Inc (DOO.TO) are among the major losers in the consumer discretionary section.

On the economic front, Data released by Statistics Canada showed the inflation rate in Canada increased to 3.4% in April, after coming in at 2.2% in the previous month. Core inflation increased 2.3% in the month, over the previous month.