Canadian Market Slips Amid Tech Selloff, Telus Loss Warning

(RTTNews) - Despite coming off early lows, the Canadian market remains firmly down in negative territory a little before noon on Friday with investors largely making cautious moves, reacting to earnings updates and on concerns about the impact of Middle East tensions and tariffs.

Technology, materials and communications stocks are down sharply. A few stocks from healthcare, financials, consumer staples and energy sectors are up in positive territory with notable gains.

The benchmark S&P/TSX Composite Index, which dropped to 35,189.78 earlier, was down 165.81 points or 0.47% at 35,339.91 a little while ago.

The Communications Capped Index is down more than 3.5%. Telus Corporation is down as much as 12.5%. Telus reported a second quarter net loss of C$1.83 billion compared to a loss of C$245 million, a year ago. Net loss attributable to common shares was C$1.84 billion versus profit of C$7 million in the comparable period. Net loss was due to a pre-tax, non-cash intangible asset and goodwill impairment of C$2.1 billion in the second quarter.

Cogeco Communications is down 1.3%, while Quebecor and BCE Inc. are down 0.8% and 0.6%, respectively.

The Materials Capped Index is down 2% with several key stocks in the sector trending lower on weak metal prices following an increase in bond yields. Eldorado Gold, Southern Cross Gold Consolidated, Ivanhoe Mines, Aris Mining Corporation, Centerra Gold and Lundin Gold are down 4%-7%.

The Information Technology Capped Index is down 2.1%. Shopify is declining by about 5%. Celestica, Docebo, Open Text Corporation, Constellation Software and Tecsys are down 1%-2%.

Among healthcare stocks, Bausch Health Companies is soaring nearly 10%. Curaleaf Holdings is down 2.5%, while Sienna Senior Living and Extendicare are down 1.7% and 1.8%, respectively.

Consumer staples stocks, Alimentation Couche-Tard is gaining nearly 2%. Weston George and Loblaw Companies are up 1.4% and 1.3%, respectively, while Empire Company is advancing nearly 1%.

Energy stocks Parex Resources and Baytex Energy are rising 7.7% and 6%, respectively. Spartan Delta Corp., International Petroleum Corporation, Advantage Energy, Vermilion Energy and Enerflex are gaining 3.2%-4%.

In the financials sector, Power Corporation, Brookfield Corporation, Great-West Lifeco, National Bank of Canada, Bank of Montreal and Manulife Financial are up with sharp to moderate gains.

Fairfax Financial Holdings Limited reported net earnings of $1,560.6 million for the second-quarter, down from $1,601.9 million in the previous year. The stock is down 1.4%.

Statistics Canada said according to preliminary data Canadian GDP is expected to have grown by 0.2% in June from a month earlier, translating to a 0.8% expansion in the second quarter. The GDP expanded by 0.3% in May, reflecting some resilience despite the inflationary pressure from higher energy prices.