After opening modestly higher, the Canadian stock market slipped into negative territory Wednesday morning, and about an hour past noon, still remains weak due to heavy selling in healthcare and energy shares.
Investors are digesting the Bank of Canada's rate decision and economic outlook, and reacting to data showing a drop in Canada's manufacturing sales in the month of May.
The Bank of Canada today left its key overnight rate unchanged at 0.25% as expected but adjusted the quantitative easing program to a target pace of $2 billion from $3 billion per week.
The Bank now expects GDP growth of around 6% in 2021, a little slower than was expected in April, but has revised up its 2022 forecast to 4.5% and projects 3.25% growth in 2023. Policymakers expect inflation to remain above 3% through the second half of this year and ease back toward 2% in 2022.
Data released by Statistics Canada showed manufacturing sales in Canada dropped by 0.6% in May, after sliding 2.1% in April.
The Capped Healthcare Index is down 3.25%. Organigram Holdings (OGI.TO), which ended with a hefty gain on Tuesday after reporting strong results, is down nearly 9% today. Aurora Cannabis (ACB.TO) is down more than 7%, while Tilray Inc (TLRY.TO), Canopy Growth Corp (WEED.TO), Cronos Group (CRON.TO) and Trillium Therapeutics (TRIL.TO) are down 4 to 5%. Bausch Health Companies (BHC.TO) is declining 1.25%.
Among energy stocks, Crescent Point Energy (CPG.TO), Cenovus Energy (CVE.TO), MEG Energy (MEG.TO), PrairieSky Royalty (PSK.TO), Arc Resources (ARX.TO), Whitecap Resources (WCP.TO) and Vermilion Energy (VET.TO) are down 2 to 4%.
Aritzia Inc (ATZ.TO) shares are down 3.7%. The company announced after trading hours on Tuesday that it posted net revenue of $246.9 million in the first quarter of 2021, up 121.7% from a year ago. Adjusted net income was $0.19 per diluted share, compared to loss of $0.23 per diluted share in the first quarter of the previous year.
Among the gainers, Tfi International (TFII.TO) is rising nearly 8%. Kirkland Lake Gold (KL.TO) is up 2.3%, while Agnico Eagle Mines (AEM.TO) and Brookfield Infrastructure Corporation (BIPC.TO) are gaining 1% and 1.2%, respectively.
The benchmark S&P/TSX Composite Index is down 64.90 points or 0.32% at 20,205.75.
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