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Canadian Shares Tumble On Economic Worries

The Canadian stock market is notably lower in late morning trades on Monday on worries about growth amid continued surge in coronavirus cases in several parts across the world.

Weak crude oil and gold prices are also weighing on stocks.

The benchmark S&P/TSX Composite Index, which scored gains in seven straight sessions, was down 182.82 points or 1.05% at 17,213.74 a little before noon today. The index touched a low of 17,124.86.

Energy and financial stocks are among the most prominent losers. Materials and real estate shares are also mostly down with sharp losses.

The Capped Energy Index is down 3.2%. Vermilion Energy (VET.TO), Crescent Point Energy (CPG.TO), Husky Energy (HSE.TO), Enerplus Corp (ERF.TO), Suncor Energy (SU.TO), Cenovus Energy (CVE.TO), Parex Resources (PXT.TO), Seven Generations Energy (VII.TO), Imperial Oil (IMO.TO), MEG Energy (MEG.TO) and Canadian Natural Resources (CNQ.TO) are down 3 to 6%.

In the Financial section, Laurentian Bank (LB.TO), Sun Life Financial (SLF.TO), Onex Corp (ONEX.TO), Bank of Montreal (BMO.TO), Manulife Financial (MFC.TO), National Bank of Canada (NA.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank of Commerce (CM.TO) and Toronto-Dominion Bank (TD.TO) are down 1 to 2.5%.

Among materials shares, Silvercorp Metals (SVM.TO), Methanex Corp (MX.TO), Eldorado Gold (ELD.TO), Hudbay Minerals (HBM.TO), Oceanagold (OGC.TO), Torex Gold Resources (TXG.TO), Osisko Mining (OSK.TO) and Kinross Gold (K.TO) are down 1.6 to 4.5%.

Technology stocks Shopify Inc. (SHOP.TO) and Kinaxis Inc. (KXS.TO) are up 4.2% and 2.7%, respectively. Descartes Systems Group (DSG.TO) is gaining about 1.3%.

Aphria Inc. (APHA.TO) shares are up nearly 6%. The company announced the company has closed the acquisition of SW Brewing Company, LLC. The unitholders of SweetWater received $250 million in cash and $50 million in Aphria stock at closing. Aphria financed the cash component of the purchase price under the agreement through available cash on hand, including the recently raised funds under its At-the-Market equity program.

Ritchie Bros Auctioneers Inc. (RBA.TO). conducted its largest Grande Prairie, AB auction ever, selling 4,900+ equipment items for CA$82+ million (US$63+ million)—surpassing the previous gross transaction value (GTV) record by 32%. The stock is gaining about 4%.

In economic news, data released by Statistics Canada showed the industrial product price index in Canada fell 0.4% over a month earlier in October of 2020, following a 0.1% drop in the previous month. It was the first fall in the industrial product price index since April.

Producer Prices in Canada increased 0.7% in October of 2020 over the same month in the previous year.

The Raw Materials Price Index rose 0.5% in October from a month earlier, following a downwardly revised 1.8% decline. Year over year, the index fell 0.3%.

Another data from Statistics Canada showed the value of building permits in Canada fell 14.6% from a month earlier to C$ 8.2 billion in October, following an upwardly revised 18.6% rise in the prior month and compared with market expectations of a 5% decline.

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