TSX Ends Notably Lower

(RTTNews) - The Canadian stock market ended notably lower on Wednesday, dragged down by loss in healthcare, energy and information technology shares.

Investors digested the Bank of Canada's rate decision and economic outlook, and reacted to data showing a drop in Canada's manufacturing sales in the month of May.

The Bank of Canada today left its key overnight rate unchanged at 0.25% as expected but adjusted the quantitative easing program to a target pace of $2 billion from $3 billion per week.

The Bank now expects GDP growth of around 6% in 2021, a little slower than was expected in April, but has revised up its 2022 forecast to 4.5% and projects 3.25% growth in 2023. Policymakers expect inflation to remain above 3% through the second half of this year and ease back toward 2% in 2022.

Data released by Statistics Canada showed manufacturing sales in Canada dropped by 0.6% in May, after sliding 2.1% in April.

The benchmark S&P/TSX Composite Index ended down by 123.41 points or 0.61% at 20,147.24, after scaling a low of 20,130.58 and a high of 20,316.29 in the session.

The Capped Healthcare Index tumbled more than 5%. Organigram Holdings (OGI.TO) and Aurora Cannabis (ACB.TO) lost 11.1% and 10.2%, respectively. Tilray Inc (TLRY.TO) shed nearly 8%, Canopy Growth Corp (WEED.TO) declined 6.8% and Cronos Group (CRON.TO) lost 6%. Aurinia Pharmaceuticals (AUP.TO) and Trillium Therapeutics (TRIL.TO) both ended lower by about 3.6%.

Energy stocks declined sharply after crude oil prices tumbled on demand worries. Crescent Point Energy (CPG.TO) lost 5.5%. Cenovus Energy (CVE.TO), Vermilion Energy (VET.TO), Whitecap Resources (WCP.TO), PrairieSky Royalty (PSK.TO) and MEG Energy (MEG.TO) shed 3 to 4.75%.

Information technology stock Hut 8 Mining (HUT.TO) declined more than 6%. BlackBerry (BB.TO), Shopify Inc (SHOP.TO), Sierra Wireless (SW.TO), Alithya Group (ALYA.TO) and Absolute Software Corp (ABST.TO) ended lower by 2.3 to 4%.

TFI International Inc (TFII.TO) shares climbed 8.75% following a rating upgrade of the stock. Gfl Environmental (GFL.TO) and Kirkland Lake Gold also posted strong gains.