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Canadian Market Modestly Higher In Cautious Trade

The Canadian stock market, which recovered after a weak start but faltered again Tuesday morning, rebounded subsequently and is firmly up in positive territory about an hour past noon.

Shares from materials, industrial, financial and real estate sections are among the notable gainers. Healthcare and energy stocks are among the ones languishing in negative territory.

Concerns over the spread of coronavirus infections across the globe, U.S.-China trade tensions and the likely impact of these on the global economy render the mood cautious, limiting the market's upside.

Data showing a sharp drop in Canada's GDP in the month of April is hurting as well.

The benchmark S&P/TSX Composite Index is up 57.05 points or 0.37% at 15,446.77, after rallying to 15,463.97 from a low of 15,319.44.

B2Gold Corp (BTO.TO), Kirkland Lake Gold (KL.TO), Wheaton Precious Metals (WPM.TO), Barrick Gold Corporation (ABX.TO), Kinross Gold Corp (K.TO) and Agnico Eagle Mines (AEM.TO) are rising 2 to 3.5%.

Shopify Inc. (SHOP.TO) is moving up 2.3%. Descartes Systems Group (DSG.TO) is rising 2.4% and Kinaxis Inc. (KXS.TO) is up 1.3%.

Fairfax Financial Holdings (FFH.TO), Bank of Montreal (BMO.TO), Canadian Imperial Bank of Commerce (CM.TO) and Bank of Nova Scotia (BNS.TO) are up with modest gains.

Air Canada (AC.TO) is down by about 3.7%. Air Canada said it is indefinitely suspending service on 30 domestic regional routes and closing eight stations at regional airports, due to continuing weak demand for both business and leisure travel due to COVID-19 travel restrictions and border closures.

Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO) and Enbridge Inc. (ENB.TO) are lower by 1.3 to 1.7%.

Cineplex Inc. (CGX.TO) shares are plunging more than 19% after the company reported a loss of $178.4-million or $2.82 per diluted shares for the first quarter of this financial year loss in the first quarter, compared with a loss of $7.36 million of 12 cents per share a year earlier. Revenues decreased 22.4% to $282.8 million from $364.6 million as attendance plunged to 10.7 million from nearly 15 million.

Alimentation Couche-Tard Inc. (ATD.B.TO) reported earnings of US$576.3 million or 52 cents per share for the fourth quarter ended April 26, compared with US$293.1 million or 26 cents per share a year earlier. Excluding one-time items, adjusted profits were $521 million or 47 cents per diluted share, up from $289 million or 26 cents per share a year earlier, the company said. The stock is up marginally.

In economic news, Canada's GDP plunged by 11.6% in the month of April over the same month in the previous year. In March, Canada's economy saw a contraction of 7.2%.

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