TSX Ends Modestly Lower

(RTTNews) - Despite opening on a firm note, the Canadian stock market ended modestly lower on Friday after spending much of the day's session in the red.

Data showing a notable improvement in the country's GDP in the month of June, and higher bullion prices lifted the market in early trades.

However, worries about global growth amid a surge in new coronavirus cases in several parts of Europe, the impasse over U.S. stimulus package, and concerns about U.S.-China tensions prevented investors from making significant moves.

The benchmark S&P/TSX Composite Index, which rose to 16,781.85 earlier in the session, ended the day with a loss of 25.70 points or 0.15% at 16,705.79. The index touched a low of 16,681.39 in the session. It gained about 1.14% in the week, despite posting losses in three of the five sessions.

Consumer staples and utilities shares ended sharply lower. Financial stocks were also mostly weak. Materials stocks moved up sharply, lifting the Capped Materials Index up by about 2.3%. Healthcare shares were the other prominent gainers. A few stocks from energy and consumer discretionary sections too posted notable gains.

According to Statistics Canada, the Canadian economy grew 6.5% over a month earlier in June of 2020, surging from an upwardly revised 4.8% percent expansion and beating market expectations of a 5.6% advance.

The data showed the Canadian economy shrank 11.5% on quarter in the three months to June 2020, the most on record, following a 2.1% decline in the previous period. Household spending tumbled at a record 13.1%, amid job losses and limited opportunities to spend due to closures of stores and restrictions on travel. The data also showed that business investment plunged 16.2%, the most since series began.

Real GDP slumped 38.7% on an annualized basis, after shrinking 8.2% in the first-quarter. Economists had expected real GDP to plunge 39.6%.

Among the most actively traded stocks, OceanaGold Corporation (OGC.TO) plunged more than 6%. Sun Life Financial (SLF.TO) and Bank of Nova Scotia (BNS.TO) lost 1.65% and 1.3%, respectively.

Kinross Gold Corporation (K.TO), Air Canada (AC.TO), B2Gold Corp (BTO.TO), Lundin Mining (LUN.TO), Aphria Inc. (APHA.TO) and Barrick Gold Corporation (ABX.TO) gained 2 to 5%.

Whitecap Resources (WCP.TO) and Cenovus Energy (CVE.TO) both moved up by about 1.6%.

George Weston (WN.TO), Cogeco Communications (CCA.TO), Loblaw Companies (L.TO), Kinaxis Inc. (KXS.TO), Shopify Inc. (SHOP.TO), Fairfax Financial Holdings (FFH.TO) and Constellation Software (CSU.TO) declined 1 to 2.5%.

MAG Silver (MAG.TO), Pan American Silver Corp (PASS.TO), Methanex Corp (MX.TO), Kirkland Lake Gold (KL.TO), Agnico Eagle Mines (AEM.TO), Lightspeed Pos (LSPD.TO) and Wheaton Precious Metals (WPM.TO) gained 3 to 5.4%.