TSX Fails To Hold Early Gains, Ends Flat

(RTTNews) - After a steady start and a subsequent good spell in positive territory, the Canadian stock market faltered and slipped into the red in afternoon trades on Wednesday, but eventually managed to end the session slightly higher.

The Bank of Canada's decision to hold rates unchanged aided the market's uptick early on in the session, but a weak outlook for the economy and largely disappointing data from across the globe rendered the mood cautious and pushed the market down to lower levels.

The benchmark S&P/TSX Composite Index ended up 5.53 points, or 0.03%, at 16,092.07. The index, which rose to 16,145.80 around mid morning, dropped to a low of 16,077.64 later on in the session.

Healthcare, energy and materials shares were the prominent losers. Information technology and telecommunications shares moved higher, while bank, consumer discretionary and industrials shares ended mixed.

Energy stocks, Encana Corporation (ECA.TO) declined more than 4%. Cenovus Energy (CVE.TO), Imperial Oil (IMP.TO), Vermilion Energy (VET.TO), PrairieSky Royalty (PSK.TO) and Canadian Natural Resources (CNQ.TO) ended lower by 1 to 2%.

Among materials shares, CCL Industries (CCL.B.TO) shed about 1.1%, Barrick Gold Corporation (ABX.TO) and Agnico Eagle Mines (AEM.TO) both ended lower by about 1.8%, while Goldcorp Inc. (G.TO) declined 3.4%. Teck Resources (TECK.B.TO) gained about 1.85%.

Canopy Growth Corporation (WEED.TO) shed 3.3%, Aurora Cannabis (ACB.TO) ended nearly 2% down, Cronos Group Inc. (CRON.TO) declined 3.2% and Aphria Inc. (APHA.TO) eased 2.3%, while Green Organic Dutchman Holdings (TGOD.TO) ended more than 1% up and Hexo Corp. (HEXO.TO) ended modestly higher.

Among bank stocks, Bank of Montreal (BMO.TO) and Bank of Nova Scotia (BNS.TO) closed modestly higher, while National Bank of Canada (NA.TO), Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO) and Canadian Imperial Bank of Commerce (CM.TO) edged down marginally.

Great Indian Gaming Corporation (GC.TO) shares declined despite a surge in earnings. The company reported net earnings of $49.2 million for the quarter ended December 2018, compared to net earnings of $12.9 million in the year-ago quarter.

The Stars Group Inc. (TSGI.TO) shares rose sharply after the company reported adjusted net earnings of $144.7 million for the quarter ended December 2018, compared to adjusted net earnings of $112 million in the year-ago quarter.

The Bank of Canada left its key interest rate unchanged at 1.75% today and pointed to "increased uncertainty" about the timing of future rate hikes, citing deceleration of the economy towards the end of 2018.

"Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook," said the bank's statement.

"With increased uncertainty about the timing of future rate increases, governing council will be watching closely developments in household spending, oil markets, and global trade policy."

According to the data released by Statistics Canada, merchandise trade deficit of Canada rose to a record $4.6 billion in December, as exports fell due to lower crude oil prices. In November, trade deficit stood at $2.0 billion.

While exports were down 3.8% in December, imports increased by 1.6%.

U.S. stocks moved mostly lower, due largely to geopolitical concerns after a U.S. think tank said analysis of new satellite images of activity at a North Korean long-range rocket site suggests Pyongyang may be rapidly rebuilding the test facility that it pledged to dismantle.

Market was also weighed down by data from ADP that showed Weak private sector job growth in February and the Commerce Department's report that showed trade deficit widened to $59.8 billion in December from a revised $50.3 billion in November.

European and Asian markets turned in a mixed performance.

In commodities, West Texas Intermediate Crude oil futures for April ended down $0.34, or 0.6%, at $56.22 a barrel.

Gold futures for April settled at $1,287.60 an ounce, down $2.90, or 0.2%, from previous close. However, gold prices turned weak after the Federal Reserve released its Beige Book.

Silver futures for May ended down $0.020, at $15.085 an ounce, while Copper futures for May settled lower by $0.0150, at $2.9185 per pound.