Canada Stocks: Toronto index weighed down by energy shares as crude falls

Organigram Global

13/12/2021 14:55

(Updates prices, adds analyst comments)
    By Amal S
    Dec 13 (Reuters) - Canada's main stock index edged lower on
Monday, as energy shares tracked weaker crude, ahead of an
expected renewal of the monetary policy framework by the Bank of
Canada later in the day.
    At 9:41 a.m. ET (14:41 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was down 10.79 points, or
0.07%, at 20,879.83.
    The energy sector  .SPTTEN  dropped 1.5% as oil prices fell
over new concerns about the Omicron coronavirus variant and
doubts around the effectiveness of vaccines against it.  O/R 
    The healthcare sector  .GSPTTHC , down 0.9%, added to losses
with major pot producers including OrganiGram Holdings Inc
 OGI.TO , Tilray Inc  TLRY.TO , Cronos Group Inc  CRON.TO  down
nearly 2%.    
    Investors await the press conference by the Bank of Canada
Governor Tiff Macklem and Finance Minister Chrystia Freeland due
at 11:00 a.m. EST to announce the BoC's new 5-year mandate.
    The central bank is expected to renew its monetary policy
framework on Monday, leaving its inflation target unchanged at
2% as concerns about the cost of living rise and the COVID-19
outlook remains uncertain.  urn:newsml:reuters.com:*:nL8N2SV5F5
    "Inflation has been running above a 1%-3% band for several
months now so it's unclear if any changes will be made or if a
US-style employment component could be added," said Colin
Cieszynski, chief market strategist at SIA Wealth Management. 
    Meanwhile, investors awaited the U.S. Federal Reserve's
meeting later in the week, with expectations running high that
the U.S. central bank will hint at a faster tapering of asset
purchases and an earlier start to raising interest rates.
    Limiting further losses was the materials sector  .GSPTTMT ,
which includes precious and base metals miners and fertilizer
companies, up 0.5%, as gold futures  GCc1  rose 0.1% to $1,784.8
an ounce.  GOL/  
    
    HIGHLIGHTS
    The TSX posted three new 52-week highs and four new lows.
    Across Canadian issues, there were 23 new 52-week highs and
16 new lows, with total volume of 39.74 million shares.



 (Reporting by Amal S in Bengaluru;
Editing by Vinay Dwivedi)
 ((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6749 3677;))