Canada Stocks: TSX ends flat in volatile trade, gold stocks gain

BELLUS Health

30/09/2022 22:36

(Updates to market close)
    By Shashwat Chauhan and Divya Rajagopal
       Sept 30 (Reuters) - Canada's main stock index ended flat
in volatile trading on the last day of a quarter that has been
plagued with worries around economic growth and hawkish central
bank policy actions.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  provisionally ended up 2.38 points, or 0.01%, at
18,444.22, after climbing to the day's high of 18,685.04. The
index lost 2% in the past quarter, and is down 16.8% from its
year high.
        "It does look like pretty much the whole market is
braced for recession," said Elvis Picardo, portfolio manager at
Luft Financial, iA Private Wealth. "Though the TSX continues to
outperform the S&P due to the energy and commodities stock, but
it has also come under selling pressure. We are taking a
defensive approach to our portfolio but it is likely that Q4 we
can see some kind of bounce back," Picardo added.
  
        The Canadian economy grew 0.1% in July, data showed on
Thursday, compared with analysts' forecast for a 0.1% decline. 
  
    The slight gain in July and likely lack of growth in August
suggest third-quarter annualized GDP growth of about 1%, well
below the Bank of Canada's most recent forecast of 2.0%,
analysts said.
  
        "Sentiment is very pessimistic (out there)," said Angelo
Kourkafas, investment strategist at Edward Jones Investments.
  
        "As more investors anticipate the recession, we think
that now might be the time to ask the question what could go
right? It would have to come down to better inflation readings
so October can be a month where global equities and the TSX can
start to stabilize."
  
        Gold stocks were boosted by higher bullion prices, as
the yellow metal  XAU=  rose to a one-week high on Friday as the
dollar retreated from recent highs.
  
        That lifted up shares of Barrick Gold  ABX.TO  6.5%
while Agnico Eagle Mines  AEM.TO  rose 2.8%.
  
        Beaten-down technology stocks  .SPTTTK  gained, with Dye
& Durham  DND.TO  jumping 9.2%. The stock has been on an upward
trend after its planned A$2.47 billion ($1.63 billion) purchase
of Australia's Link Administration  LNK.AX  collapsed last week.
        Meanwhile, data from the U.S. showed inflation-adjusted
consumer spending edged up 0.1% in August after dipping 0.1% in
the prior month.  urn:newsml:reuters.com:*:nL1N31115H
    Canadian drug firm Bellus Health  BLU.O  climbed 4.4% after
RBC raised its price target on the company's U.S.-listed shares.
    Luxury retailer Canada Goose Holdings  GOOS.TO  fell 4.3,
the most on the TSX.     
 (Reporting by Shashwat Chauhan; editing by Uttaresh.V, Vinay
Dwivedi and Diane Craft)
 ((Shashwat.Chauhan@thomsonreuters.com;))