Canadian Market Recovering After Early Setback; Energy, Materials Shares Tumble

(RTTNews) - After opening notably lower on weak crude oil prices and concerns about slowing global economy, the Canadian market has regained some lost ground on Monday.

Still, with several stocks from energy and materials sectors reeling under pressure, the market remains in negative territory a few minutes past noon.

Healthcare stocks are up with strong gains. A few stocks from consumer and industrials sectors are also notably higher. Stocks from the rest of the sectors are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is down 33.00 points or 0.16% at 20,146.81, after having tumbled to 20,023.14 earlier.

Energy stocks MEG Energy (MEG.TO), Paramount Resources (POU.TO), Vermilion Energy (VET.TO), Athabasca Oil Corp (ATH.TO), Birchcliff Energy (BIR.TO), Whitecap Resources (WCP.TO), Crescent Point Energy (CPG.TO), Baytex Energy (BTE.TO), Suncor Energy (SU.TO), Arc Resources (ARX.TO) and Cenovus Energy (CVE.TO) are down 2.5 to 4.8%.

In the materials sector, Turquoise Hill Resources (TRQ.TO) is declining nearly 10%. Turquoise announced that the company's Special Committee of independent directors found Anglo-Australian mining firm Rio Tinto's proposal to buy Turquioise for a cash consideration of C$34 per share does not fully and fairly reflect full and fair value of the company.

K92 Mining Inc (KNT.TO) is down nearly 3%. The company reported net income of US$5.1 million or $0.02 per share in the second quarter, a 17% increase from a year ago.

Ivanhoe Mines (IVN.TO) is declining 4.2% despite turnaround results. The company recorded a profit of $351.5 million for the second-quarter of 2022, compared to a loss of $108.6 million for the same period in 2021.

Ero Copper (ERO.TO), First Quantum Minerals (FM.TO), Torex Gold Resources (TXG.TO), Ivanhoe Mines (IVN.TO), Methanex Corp (MX.TO) and Eldorado Gold (ELD.TO) are down 3 to 7%.

Canopy Growth Corp (WEED.TO), up nearly 15%, is the biggest gainer in the Health Care Index. Tilray Inc (TLRY.TO) is surging 8.7% and Aurora Cannabis (ACB.TO) is climbing 8.5%, Cronos Group (CRON.TO) is advancing nearly 6% and Bausch Health Companies (BHC.TO) is up by about 2%.

On the economic front, data from Statistics Canada showed car registrations in Canada increased to 153,361 units in June of 2022, compared to a revised 151,199 units in May.

Another data from Statistics Canada showed manufacturing sales in Canada fell 0.8% month-over-month in June of 2022, following a downwardly revised 1.1% drop in the previous month.

Meanwhile, wholesale sales in the country increased by 0.1% from a month earlier in June of 2022, compared to a revised 0.9% gain in May.