Canadian Market Looks Headed For Weak Close; Energy Stocks Fall

(RTTNews) - The Canadian market is down firmly in negative territory Monday afternoon with energy stocks reeling under sustained selling pressure on weak oil prices. A few stocks from healthcare and industrials sectors are also sharply lower.

The mood is quite cautious with investors looking ahead to the Bank of Canada's monetary policy announcement due on Wednesday. The Europen Central Bank, scheduled to announce its policy on Thursday, is expected to cut interest rate by a quarter percentage point.

The benchmark S&P/TSX Composite Index was down 179.91 or 0.81% at 22,089.21 a little while ago.

The Energy Capped Index is down 4.28%. Baytex Energy (BTE.TO) is down 7.7%. Precision Drilling Corporation (PD.TO), Tamarack Valley Energy (TVE.TO), Veren Inc (VRN.TO), Imperial Oil (IMO.TO), Cenovus Energy (CVE.TO), MEG Energy (MEG.TO), Whitecap Resources (WCP.TO), Vermilion Energy (VET.TO) and Paramount Resources (POU.TO) are lower by 4 to 6.5%.

Healthcare stocks Bausch Health Companies (BHC.TO) and Chartwell Retirement Residences (CSH.UN.TO) are down 4.3% and 2.1%, respectively.

In the industrials section, Badger Infrastructure Solutions (BDGI.TO) is down 3.1%, while Cargojet (CJT.TO), Thomson Reuters (TRI.TO), Westshore Terminals Investment Corp (WTE.TO), Canadian Pacific Kansas City (CP.TO), Ballard Power Systems (BLDP.TO), Waste Connections (WCN.TO), Mullen Group (MTN.TO), Canadian National Railway (CNR.TO) and Snc-Lavalin Group (ATRL.TO) are down 1.3 to 2%.

GFL Environmental (GFL.TO) is soaring 11.8%. Cogeco Inc (CGO.TO) is rallying about 7.5%. BRP Inc (DOO.TO), Rogers Communications (RCI.A.TO), Docebo Inc (DCBO.TO), Restaurant Brands International (QSR.TO) and FirstService Corporation (FSV.TO) are up 2 to 3.4%.

Colliers International Inc (CIGI.TO) announced it has entered into a definitive agreement to acquire Englobe Corporation, a Canadian multi-discipline engineering, environmental and inspection services firm. As per the terms, Colliers will buy a "significant" controlling interest for approximately US$475 million in cash. The stock is gaining about 0.3%.

On the economic front, the S&P Global Canada Manufacturing PMI dipped to 49.3 in May 2024, from 49.4 in April, pointing to the thirteenth consecutive month of contraction in Canadian factory activity.