CANADA STOCKS-TSX Closes Slightly Lower Amid US Cannabis Concerns, Gold Drop

Band Nicolas Saminather

November 18 (Reuters)The main Canadian stock index closed slightly lower Thursday, as steep declines in cannabis stocks were offset by gains in industrial, tech and energy stocks.

Toronto Stock Exchange S & P / TSX Composite Index .GSPTSE ended the day down 15.48 points, or 0.07%, to 21,637.54.

Cannabis producers Cronos Group CRON.TO and Tilray TLRY.O drove declines, falling more than 12% after Barclays launched a hedge of the two with “underperforming” ratings. Other cannabis producers, including Aurora Cannabis ACB.TO, Holdings organization chart OGI.TO and canopy growth WEED.TO also slipped after a Washington Post report that a U.S. federal legalization attempt may fail as lawmakers disagree on its details.

This made healthcare the worst performing sector of the day, falling 6%. Technology and industrials made the biggest gains, at around 0.6%.

The Washington Post report “is causing massive sales,” said Greg Taylor, portfolio manager at Purpose Investments, although the increase in technology names, including Shopify SHOP AT, one of the top 10 winners, hid part of it.

“Gold is down today due to some profit taking,” following recent gains as investors sought to hedge against soaring inflation, Taylor added.

The material sub-index .GSPTTMT, which includes precious and base metals, mining companies and fertilizer companies, lost 0.9% as spot gold price XAU = fell 0.4%. GOL /MET / L

Energy companies Cenovus Energy CVE.TO and Canadian natural resources CNQ.TO were among the top 10 winners, climbing 2.7% and 1.8% respectively, following higher crude prices.

american crude CLc1 prices rose 0.4%. WHERE

Canadian stocks have risen around 24% so far this year, broadly in line with the S&P 500 Index .SPX on strong earnings and renewed optimism, but the risks of rising interest rates following the spike in inflation have recently weighed on sentiment.

Insurer Definity Financial Corp DFY.TO jumped 36% when it debuted on the stock market after raising C $ 2.1 billion ($ 1.6 billion) in Canada’s second-largest public offering.

(Reporting by Shashank Nayar in Bengaluru; Editing by Aditya Soni, Ramakrishnan M. and Jonathan Oatis)

(([email protected]; in the US +1 646 223 8780; outside the US +91 80 6182 2256;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source link

Comments are closed.