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Canadian Market Modestly Lower At Noon; Energy Stocks Tumble

The Canadian stock market is down in negative territory around noon on Friday, weighed down by sharp losses in energy section due to falling crude oil prices. The market's downside is not much pronounced thanks to some strong buying in the technology sector.

Worries about growth due to surging coronavirus cases and fresh lockdown measures in Europe also weigh on sentiment.

Data released by Statistics Canada showed retail sales in the country dropped by 0.6% in September over the previous month. Retail Sales increased 4.8% in September of 2021 over the same month in the previous year.

Retail Sales Ex Autos in Canada decreased to -0.2% in September from 2.8% in August of 2021.

Another data from Statistics Canada showed prices of new homes in Canada rose 0.9% over a month earlier in October, after rising by 0.4% in September. Year-on-year, the index rose 11.5% in October.

The benchmark S&P/TSX Composite Index, which drifted down to 21,542.70, is down 27.88 points or 0.13% at 21,609.68 a little past noon.

The Capped Energy Index is down more than 4%. Enerplus Corp (ERF.TO), Crescent Point Energy (CPG.TO), MEG Energy Corp (MEG.TO), Vermilion Energy (VET.TO), Cenovus Energy (CVE.TO), Canadian Natural Resources (CNQ.TO), Parex Resources (PXT.TO), Whitecap Resources (WCP.TO), Arc Resources (ARX.TO) and Tourmaline Oil Corp (TOU.TO) are down 3 to 6.5%.

Among technology stocks, Hut 8 Mining (HUT.TO) is soaring 8.8%. Shopify Inc (SHOP.TO) is gaining 5% and Docebo Inc (DCBO.TO) is up nearly 4%. Descartes Systems (DSG.TO) and Converge Technology Solutions Corp (CTS.TO) are up 2.1% and 2%, respectively. Nuvei Corp (NVEI.TO), Enghouse Systems (ENGH.TO), Kinaxis Inc (KXS.TO), Open Text Corp (OTEX.TO) and Constellation Software (CSU.TO) are gaining 1 to 1.5%.

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