TSX Fails To Hold Early Gains, Ends Modestly Lower

(RTTNews) - After opening on a bright note on positive lead from global markets, Canadian stocks lost their way midway through the session and eventually ended on a negative note on Tuesday.

Losses in information technology, healthcare, consumer staples, consumer discretionary and industrials sections dragged the market down into negative territory. Materials stocks edged higher, while energy, telecom and financial stocks ended mixed.

The benchmark S&P/TSX index ended down 30.71 points or 0.19% at 16,390.13, well off the day's high of 16,512.27.

The capped healthcare index shed 2.57%. Aurora Cannabis Inc. (ACB.TO) tumbled 7.7%. The company announced today that it has received a Letter of Intent from Malta Enterprise, approving its application for the establishment of a seed-to-pharma cannabis operation.

Among other prominent losers in the healthcare space, Canopy Growth Corporation (WEED.TO) declined by about 1.8% and Aphria Inc. (APH.TO) ended 3.7% down.

The information technology index ended 1.5% down. Constellation Software Inc. (CSU.TO) declined 2.3%, Shopify Inc. (SHOP.TO) lost 3%, BlackBerry (BB.TO) eased by 1.6% and Descartes Systems Group Inc. (DSG.TO) lost 3.1%.

The consumer staples index shed 1.57%. Metro Inc.(MRU.TO) ended 2.4% down, Saputo Inc. (SAP.TO) declined nearly 3.5%, Premium Brands Holdings Corporation (PBH.TO) ended 3.4% down and Maple Leaf Foods Inc. (MFI.TO) drifted down by 1.8%.

The consumer discretionary index ended 1.14% down. Gildan Activewear Inc. (GIL.TO) plunged 6.35% and Canada Goose Holdings Inc. (GOOS) declined by 3.5%, while Dollarama Inc. (DOL.TO), Shaw Communications Inc. (SJR.B.TO) and Great Canadian Gaming Corporation (GC.TO) lost 1 to 2%.

In the industrials space, Canadian Pacific Railway Limited (CP.TO), Waste Connections (WCN.TO) and Finning International Inc. (FTT.TO) lost 2 to 3%. The capped industrials index lost about 1.1%.

In the energy sector, Canadian Natural Resources (CNQ.TO), Encana Corporation (ECA.TO), Imperial Oil (IMO.TO), Vermilion Energy (VET.TO), Husky Energy (HSE.TO), Tourmaline Oil Corp. (TOU.TO) and ARC Resources (ARX.TO) gained 0.6 to 2%.

Suncor Energy lost about 0.6%, while PrairieSky Royalty Ltd. tumbled 6.6% on disappointing June quarter results.

Among materials stocks, Teck Resources (TECK.B.TO) gained 1.55% and CCL Industries (CCL.B.TO) ended 1.4% up, while First Quantum Minerals (FM.TO) jumped 5.8%.

Among heavyweight bank stocks, Bank of Nova Scotia (BNS.TO) ended modestly higher, while others ended little changed from previous closing levels.

Gear Energy Ltd. (GXE.TO) announced that it has entered into a definitive agreement to acquire Steppe Resources Inc., a private oil and gas company. The stock ended 1.4%.

Aecon Group Inc. (ARE.TO) declined marginally. The company announced that its Board of Directors has appointed Jean-Louis Servranckx as the Company's President and Chief Executive Officer, effective September 4, 2018.

In commodities, crude oil futures for September were trading higher by $0.80 or 1.23% at $68.72 a barrel.

Gold futures for August settled marginally down at $1,225.50 and Silver futures for September were trading at $15.485, gaining $0.60 or 0.39%.

U.S. stocks ended on a mixed note. While the Dow ended nearly 200 points up, the S&P 500 edged up marginally and the Nasdaq closed flat.

Major European markets closed higher, led by gains in financials and mining stocks, after the Chinese government revealed plans to stimulate growth.

Asian markets ended mostly higher overnight, as investors shrugged off concerns about trade war and focused on corporate earnings. The Chinese market ended sharply higher after the country's central bank injected record liquidity into the banking system via medium-term lending facility to alleviate funding pressure.