Canadian Market Stages Modest Recovery After Sharp Plunge

(RTTNews) - The Canadian market is down sharply around noon on Tuesday, with stocks going down south as investors press sales across the board, after having watched the global sell-off from the sidelines on Monday due to Civic Day holiday.

Global stocks fell sharply on Monday amid rising fears of a possible recession in the U.S., and geopolitical tensions in the Middle East.

Materials, healthcare, technology, consumer discretionary and financials shares are among the major losers today. Consumer staples, industrials, utilities and energy stocks are also mostly down in negative territory.

The benchmark S&P/TSX Composite Index, which plunged to 21,659.26, losing nearly 570 points, is down 315.60 points or 1.42% at 21,912.03 a few minutes past noon.

Pollard Banknote Limited (PBL.TO) shares are tanking nearly 30%. Wheaton Precious Metals (WPM.TO) is down 5.5%. Franco-Nevada Corporation (FNV.TO), Precision Drilling Corporation (PD.TO), CGI Inc (GIB.A.TO), Constellation Software (CSU.TO), goeasy (GSY.TO), Colliers International (CIGI.TO), Boyd Group Services (BYD.TO), WSP Global (WSP.TO) and Fairfax Financial Holdings (FFH.TO) are down 2.3 to 4.5%.

Canadian Tire Corporation (CTC.TO) and Cipher Pharmaceuticals (CPH.TO) are gaining 8.4% and 8%, respectively. Quebecor (QBR.A. TO) is up 6% and Molson Coors Canada Inc. (TPX.B.TO) is up 5.3%.

Bombardier Inc (BBD.A.TO), Celestica Inc (CLS.TO), TFI International (TFII.TO) and Restaurant Brands International (QSR.TO) are up 1 to 1.5%.

RB Global Inc (RBA.TO) is up nearly 2%. The company reported a net income of $100.7 million for the second-quarter, up 30%, compared to the net income it posted in the year-ago quarter.

Nuvei Corp. (NVEI), a Canadian financial technology firm, Monday announced an agreement to acquire Pay2All Instituiçao de Pagamento Ltda or Pay2All, a licensed payment institution authorized by the Central Bank of Brazil. The financial aspects of the deal were not revealed. The stock is down 0.6%.

AtkinsRealis Group (ATRL.TO) announced that it has won a US$65 million contract to provide professional and engineering services to Miami-Dade Department of Solid Waste Management for its new state of the art waste-to-energy (WTE) plant. The stock is down by about 1%.

On the economic front, data from Statistics Canada showed Canada recorded a trade surplus of C$640 million in June. Exports increased to C$66650 million in June, while imports were up at C$66010 million in the month, the data showed.

The S&P Global Canada Composite PMI fell to 47.0 in July 2024, down from 47.5 in June, indicating a sharper contraction in private sector output and marking the lowest reading since March.

The S&P Global Canada Services PMI fell to 47.3 in July 2024, after coming in at 47.1 in June, indicating continued contraction in Canada's services economy for the second consecutive month, although the pace of decline eased.