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Toronto stocks slip as healthcare and commodity-linked stocks drag

Published 27/08/2024, 08:52 pm
© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo
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By Nikhil Sharma

(Reuters) -Canada's main stock index fell on Tuesday due to declines in healthcare, mining and energy stocks, while investors focused on mixed quarterly results from two major domestic lenders.

At 10:03 a.m. ET (14:03 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 106.73 points, or 0.46%, at 23,242.24, and was set to snap its two-day record-breaking streak.

At least nine major sectors on the TSX declined led by a drop in healthcare sector at 1.5%, primarily due to cannabis firm Tilray Brands falling 6%.

The materials sector dropped 1% tracking gold prices, despite copper prices nearing their six-week high. [GOL/] [MET/L]

The energy sector slipped 0.8% as oil prices declined after gaining over 7% in the past three sessions on the possible widening of the Middle East conflict and potential shutdown of Libya's oil fields. [O/R]

In domestic earnings, Bank of Nova Scotia shares rose 2% on better-than-expected profit, while Bank of Montreal shares fell 6% on a profit miss, with both banks setting aside larger funds for bad loans.

"There's more likely downside pressure for bank earnings moving forward with a slowing Canadian economy as consumers seem to be tapped out at this moment," said Macan Nia, co-chief investment strategist at Manulife Investment Management.

Domestic investors are eyeing a further loosening of credit conditions with higher bets on a 25-basis point cut at the Bank of Canada's next policy meeting on September 4.

© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo

On Wednesday, markets will pay attention to the earnings of AI-darling Nvidia, where investors expect nothing short of outstanding results from the trillion-dollar company.

Meanwhile, results from the domestic lenders like Royal Bank of Canada and National Bank of Canada will also remain on investors' radar.

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