Canadian Market Down Firmly In Negative Territory At Noon

(RTTNews) - The Canadian market is down firmly in negative territory around noon on Thursday with stocks from energy and materials sectors declining sharply on selling pressure. Healthcare stocks are the other major losers.

Energy stocks are down sharply on weak crude oil prices amid concerns about outlook for energy demand due to strict restrictions on movements in several countries to curb the spread of the Omicron variant of the coronavirus.

The benchmark S&P/TSX Composite Index is down 177.68 points or about 0.8% at 20,899.67 a little past noon.

The Capped Energy Index is down 2.4%. Parex Resources (PXT.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), MEG Energy (MEG.TO), Birchcliff Energy (BIR.TO), Tourmaline Oil Corp (TOU.TO) and Whitecap Resources (WCP.TO) are down 2 to 3.5%.

In the materials section, Kinross Gold Corp (K.TO) is plunging more than 10%. Kinross said it has agreed to acquire all of the outstanding common shares of Great Bear Resources Ltd. for C$29.00 per Share, plus a contingent value right.

As per the terms of the deal, Great Bear shareholders will be able to elect to receive the upfront consideration as either C$29.00 in cash or 3.8564 Kinross shares per Great Bear share.

Capstone Mining (CS.TO) is down 7%, while Equinox Gold (EQX.TO), New Gold (NGD.TO), Endeavour Silver Corp (EDR.TO), Silvercorp Metals (SVM.TO) and Torex Gold Resources (TXG.TO) are down 4 to 5.2%.

In the healthcare section, Well Health Technologies (WELL.TO) is declining nearly 4%, Tilray Inc (TLRY.TO) is down 3.7% and Canopy Growth Corp (WEED.TO) is lower by 2.7%. Aurora Cannabis (ACB.TO), Bausch Health Companies (BHC.TO) and Cronos Group (CRON.TO) are down 1 to 1.6%.

Thomson Reuters Corp. (TRI.TO) has received a binding offer from Karnov Group to purchase Editorial Aranzadi SAU, or Thomson Reuters Legal Business Spain. Editorial Aranzadi SAU is expected to be combined with and sold in conjunction with Wolters Kluwer France and Wolters Kluwer Spain. The stock is down by about 0.5%.

Empire Company Limited (EMP.A.TO) shares are rising nearly 4%. The company reported second-quarter net earnings of $175.4 million or $0.66 per share, compared to $161.4 million or $0.60 per share last year.