TSX Ends On Weak Note After Cautious Session

After seeing a brief spell in positive territory Wednesday morning, the Canadian market drifted down into the red and stayed weak till the end of the session, due largely to sustained selling in cannabis and industrials shares.

Uncertainty about near term outlook for the market amid concerns about inflation and reports showing a rise in coronavirus cases in several countries in Europe rendered the mood cautious.

Investors also digested the data on Canadian inflation. Data released by Statistics Canada this morning showed Canada's headline inflation rate rose to 4.7% in October from 4.4% in the prior month. It was the highest inflation rate since February of 2003.

On a monthly basis, consumer prices increased 0.7%, quickening from a 0.2% gain in September.

The benchmark S&P/TSX Composite Index ended down by 64.14 points or 0.3% at 21,653.02. The index, which advanced to 21,753.50 in early trades, dropped to a low of 21,628.06 later on in the day.

Aurora Cannabis (ACB.TO), Canopy Growth Corp (WEED.TO), Organigram Holdings (OGI.TO), Tilray Inc (TLRY.TO) and Cronos Group (CRON.TO) lost 4 to 5.2%.

In the industrials section, Ballard Power Systems (BLDP.TO) declined more than 6% and Bombardier Inc (BBD.B.TO) ended 3.25% down. Canadian Pacific Railway (CP.TO), Westport Fuel Systems (WPRT.TO) and Cae Inc (CAE.TO) also declined sharply.

Osisko Mining (OSK.TO), up nearly 7.5%, was the biggest gainer in the materials section. Fortuna Silver Mines (FVI.TO), Lithium Americas Corp (LAC.TO), B2Gold Corp (BTO.TO), Equinox Gold (EQX.TO), Canfor Corp (CFP.TO) and K92 Mining (KNT.TO) gained 3 to 4.5%.

Financial shares turned in a mixed performance. Fairfax Financial Holding (FFH.TO) climbed nearly 7%. CDN Western Bank (CWB.TO), Laurentian Bank (LB.TO), Toronto-Dominion Bank (TD.TO) and Sun Life Financial (SLF.TO) shed 0.7 to 1.1%.

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