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Canadian Market Extending Losses; Healthcare, Technology Stocks Lose Ground

The Canadian stock market is notably lower a little past noon on Thursday, as several stocks from across various sectors are down in negative territory on sustained selling pressure.

Concerns about inflation, some disappointing economic data and a few weak earnings reports are contributing to the negative sentiment in the market.

Healthcare, technology, industrials and consumer discretionary stocks are among the prominent losers. Consumer staples, financial, utilities, energy and materials shares are turning in a mixed performance.

The benchmark S&P/TSX Composite Index was down 106.05 points or 0.58% at 18,268.73 about half an hour past noon, after falling to a low of 18,207.20 earlier in the session.

Canopy Growth Corporation (WEED.TO), Aurora Cannabis (ACB.TO), Cronos Group (CRON.TO), Bausch Health Companies (BHC.TO) and Chartwell Retirement Residences (CSH.UN.TO) are down 1.4 to 4.1%.

In the technology section, BlackBerry (BB.TO) and Photon Control (PHO.TO) are down more than 3%. Celestica Inc. (CLS.TO), CGI Group (GIB.A.TO) and Shopify Inc. (SHOP.TO) are lower by 2 to 2.2%. Open Text Corporation (OTEX.TO), Sierra Wirelss (SW.TO) and Lightspeed Pos (LSPD.TO) are down 1 to 1.4%.

Ballard Power Systems (BLDP.TO), down 4.8%, is the biggest loser in the Industrial index. CargoJet, Gfi International (GFL.TO), Air Canada (AC.TO), Russel Metals (RUS.TO), Mullen Group (MTL.TO), Cae Inc. (CAE.TO), Tfi International (TFII.TO), Canadian Pacific Railway (CP.TO), Canadian National Railway (CNR.TO) and Snc-Lavalin (SNC.TO) are down 1.4 to 2.5%.

Consumer discretionary stocks Linamar (LNR.TO), Magna International (MG.TO), Martinrea International (MRE.TO), Brp Inc. (DOO.TO) and Gildan Activewear (GIL.TO) are declining 2.5 to 3%.

Teck Resources Ltd. (TECK_A.TO) reported fourth quarter adjusted earnings per share of C$0.46 compared to C$0.40, prior year. Adjusted profit attributable to shareholders increased to C$248 million from C$223 million, the company said. The stock is up nearly 1%.

MTY Food Group Inc. (MTY.TO) reported a net profit of $20.1 million or 81 cents per diluted share for the quarter ended Nov. 30, down from $20.7 million or 83 cents per diluted share a year earlier. Revenue dropped to $127.2 million in the fourth quarter, from $156.8 million a year ago. The stock is down by about 5%.

On the economic front, according to data released by Automatic Data Processing Inc., private businesses in Canada shed 231,200 jobs in January, after a revised 338,200 rise in December. Market had expected a job loss of about 14,100.

Data released by Statistics Canada showed prices of new homes in Canada rose by 0.7% from the previous month in January of 2021, following a 0.3% increase in December. Year-on-year, new house prices advanced 5.4%.

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