The Canadian stock market ended lower on Thursday, with investors mostly treading cautiously amid uncertainty about any quick resolution to trade issues with the U.S. Weak crude oil prices too contributed to the market's negative close .
However, the downside to the benchmark TSX was not any significantly sharp, as reports that the U.S. and China will have a new round of trade talks in the near futures to sort out issues, aided sentiment.
Uncertainty about any quick progress on NAFTA discussions rendered price movements a bit listless. According to reports, Canadian Foreign Minister Chrystia Freeland has stated that it has been decided to give Canadian officials some time to hold technical decisions in order to have another productive conversation with U.S. officials.
The benchmark S&P/TSX Composite Index ended down 47.31 points, or 0.29%, at 16,001.71. The index touched a low of 15,987.21 and a high of 16,071.24 intraday. On Monday, the index ended down 45.23 points, or 0.28%, at 16,049.02.
The Capped Healthcare Index has shed 8.5%. Canopy Growth Corporation (WEED.TO) tanked as much as 13.6%.
Aurora Cannabis Inc. (ACB.TO) declined by 8.9%, Cronos Group Inc. (CRON.TO) ended nearly 11%, Green Organic Dutchman Holdings (TGOD.TO) lost 14.8% and Aphria Inc. (APH.TO) tumbled by nearly 17%, while Hexo Corp. (HEXO.TO) eased by more than 9%.
In the consumer discretionary space, Dollarama Inc.(DOL.TO) ended lower by 17.2% after the company's second quarter results fell short of expectations. Magna International Inc. (MG.TO) gained 2.5%.
Among energy stocks, BayTex Energy (BTE.TO) ended 2.7% down, Encana Corporation (ECA.TO) declined by 1.3%, Cenovus Energy Inc. (CVE.TO) ended 1.4% down, while Tourmaline Oil Corp. (TOU.TO) moved up by 4.1% and Imperial Oil (IMO.TO) ended nearly 1% up.
In the materials section, Methanex Corporation (MX.TO) surged up 2.75%, Teck Resources (TECK.B.TO) advanced by 1.1% and CCL Industries Inc. (CCL.B.TO) gained nearly 1%. Kinross Gold (K.TO) and New Gold Inc. (NGD.TO) gained 1.9% and 1.6%, respectively. Agnico Eagle Mines (AEM.TO) declined 1.6%.
Among the stocks in the banking space, Bank of Montreal (BMO.TO) declined by 0.4%, while the rest ended little changed from previous closing levels.
InMed Pharmaceuticals Inc. (IN.TO) shares shed more than 15% after the company reported net loss of $3.03 million and $8.52 million, or $0.02 and $0.06 per share, respectively, for the three and twelve months ended June 2018, compared with a net loss of $1.88 million and $4.47 million, or $0.02 and $0.05 per share, for the three and twelve months ended June 30, 2017.
On the economic front, a report released by Statistics Canada said that builders in 15 of the 27 census metropolitan areas reported higher prices in July. The Canada level new housing price index edged up by 0.1%, rising for the second successive month.
Markets in Europe ended on a mixed note today, after largely cautious trade.
Asian markets ended mostly higher on Thursday with investors picking up stocks again on reports that a fresh round of talks between the U.S. and China, the world's two largest economies is likely in the near future.
The Bank of England and the European Central Bank announced their monetary policies today. The Bank of England's Monetary Policy Committee, led by Governor Mark Carney, voted to keep the key rate unchanged at 0.75% and to maintain the quantitative easing through asset purchases at GBP 435 billion. The MPC reiterated that any future increases in Bank Rate were likely to be at a gradual pace and to a limited extent.
The European Central Bank too kept its interest rates unchanged. The bank has maintained the forward guidance on monetary stimulus for a second policy session in a row. The main refi rate is currently at a record low zero percent and the deposit rate at -0.40%. The marginal lending facility rate is 0.25%.
The ECB has trimmed its economic growth outlook for this year and next. Speaking at a post-policy press conference, ECB President Mario Draghi said global risk factors have become more of a threat in recent months.
"Uncertainties relating to rising protectionism, vulnerabilities in emerging markets, and financial market volatility have gained more prominence recently," Draghi said.
In commodities, crude oil futures for October ended down $1.78, or 2.5%, at $68.59 a barrel on the New York Mercantile Exchange, after International Energy Agency reported that global oil supply reached a record 100 million barrels per day in August.
Gold futures for December ended down $2.70, or 0.2%, at $1,208.20 an ounce.
Silver futures for December settled at $14.244 an ounce, down $0.049 from previous close, while copper futures for December ended up $0.0070, at $2.6830 per pound.
For comments and feedback contact: editorial@rttnews.com
Business News