TSX Snaps Winning Streak, Ends Moderately Lower

(RTTNews) - The Canadian stock market ended on a weak note on Wednesday, snapping a six-day winning streak, as investors stayed largely cautious, looking for fresh direction.

Optimism about U.S. fiscal stimulus and economic recovery following the rollout of coronavirus vaccine aided sentiment. However, the surge in new coronavirus cases and likelihood of tighter lockdown restrictions in several places across the world weighed on stocks.

The Bank of Canada today left its target for the overnight rate at a record low of 0.25%, in line with expectations. The bank also maintained its extraordinary forward guidance, reinforced and supplemented by its quantitative easing program, which continues at its current pace of at least C$ 4 billion per week.

The bank noted that Canada's economic recovery will continue to require extraordinary monetary policy support while interest rates will remain low until economic slack is absorbed so that the 2% inflation target is sustainably achieved.

The bank added that it remains committed to providing the stimulus needed to support recovery and achieve the inflation objective.

The benchmark S&P/TSX Composite Index ended lower by 79.14 points or 0.45% at 17,559.86, after touching a low of 17,475.12.

Healthcare, information technology and materials shares tumbled. Consumer staples, consumer discretionary and telecom stocks moved higher.

The Capped Healthcare Index slid 3.62%. Trillium Therapeutics Inc. (TRIL.TO) plunged more than 12.5%. Aurora Cannabis (ACB.TO) ended nearly 7% down. Canopy Growth Corporation (WEED.TO), Aphria Inc. (APHA.TO), Aurinia Pharmaceuticals (AUP.TO) and Cronos Group Inc. (CRON.TO) lost 3.6 to 5.4%.

The Capped Information Technology Index drifted down 2.15%. Shopify Inc. (SHOP.TO) declined more than 6% and Sierra Wireless (SW.TO) ended 4.85% down. Lightspeed Pos (LSPD.TO), BlackBerry (BB.TO), Kinaxis Inc. (KXS.TO) and CGI Group Inc. (GIB.A.TO) lost 2 to 2.8%.

The Materials Index fell 1.74%. Silvercorp Metals (SVM.TO), Novagold (NG.TO), Oceanagold (OGC.TO), Ssr Mining (SSRM.TO), Hudbay Minerals (HBM.TO), MAG Silver Corp (MAG.TO), Wheaton Precious Metals (WPM.TO), Kinross Gold (K.TO), B2Gold Corp (BTO.TO) and Agnico Eagle Mines (AEM.TO) ended lower by 3 to 5%.

Consumer staples stocks Weston George (WN.TO), The North West Company (NWC.TO) and Loblaw (L.TO) gained 2.8 to 4%.

Consumer discretionary stock Dollarama (DOL.TO) gained more than 3%. The company reported earnings of $161.9 million or 52 cents per diluted share for the quarter ended November 1, up from $138.6 million on 44 cents per diluted share in the corresponding quarter last year.

Linamar Corp (LNR.TO), Sleep Country Canada Holdings (GOOS.TO), Restaurant Brands International (QSR.TO) and Gildan Activewear (GIL.TO) were the other major gainers in the consumer discretionary section.

Telecom stocks Telus Corp (T.TO) and Rogers Communications (RCI.B.TO) gained 1.7% and 1.35%, respectively. BCE Inc. (BCE.TO) ended nearly 1% up.

In the energy section, Crescent Point Energy (CPG.TO), Enerplus Corp (ERF.TO), Suncor Energy (SU.TO) and Parex Resources (PXT.TO) lost 1.3 to 2%.

Whitecap Resources (WCP.TO) gained nearly 4%. Whitecap Resources Inc. and TORC Oil & Gas Ltd. (TOG.TO) announced that they have entered into a business combination agreement as per which the companies will combine their businesses in an at market, all-stock transaction valued at approximately $900 million , including TORC's net debt, estimated at $335 million as of December 31, 2020. Torc Oil shares gained about 1.2%.

Toronto-Dominion Bank (TD.TO), National Bank of Canada (NA.TO) and Bank of Montreal (BMO.TO) gained 1.2%, 1% and 0.7%, respectively.