Canada’s main stock market shed 0.3% Wednesday as the big three sectors — financials, materials and energy — all declined after the Bank of Canada left its key interest rate unchanged. The S&P/TSX Composite Index fell 50 points or 0.3% to close at 15,854.
Sector wise, financials lost 0.4% while materials fell 0.3% and energy was little changed to negative as crude oil prices shed 0.6%. On the plus side of the ledger, telecoms gained 1%.
In stock news, Air Canada (AC.TO) shares fell 1.5% despite reporting record quarterly revenue and profits. Roots (ROOT.TO) shed 16% to around $10 a share after completing its initial public offering at $12 per share. Telus (T.TO) gained 3% on an upgrade and a downgrade dragged down CN Rail’s (CNR.TO) stock by 1%. Heavily traded Bombardier (BBD-B.TO) lost 4.5% while Eldorado Gold (ELD.TO) fell a further 11% Wednesday after announcing Tuesday weaker production demand from its Turkish gold mine.
In economic news, the Bank of Canada held its policy rate steady at 1.00%, as widely expected, but it indicated that they will be “cautious in making future adjustments to the policy rate.” Though that’s consistent with a gradual path of rate increases going forward after the aggressive July/September combination of rate hikes, soothed nerves and bond yields dropped lower as a result.
The Canadian dollar lost more than seven-tenths of a cent to 78.11 US.
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