News

Canadian Stocks Continue to Decline

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Andrew R. Michaud

• September 07, 2023

Canadian stocks experienced another day of decline on Thursday, following the Bank of Canada's decision to maintain its key interest rate at 5%. As a result, the S&P/TSX Composite Index retreated by 0.28% to 20,170.71. This week alone, the index has fallen by 1.67%. The S&P/TSX 60, composed of blue-chip stocks, also dropped by 0.25% to 1,208.81, resulting in a weekly loss of 1.8%.

Sector Performance

Most sectors saw a decline, with consumer durables, technology services, and consumer services experiencing notable losses. However, gains were observed in the utility, health services, and industrial services sectors.

BlackBerry's Shares Fall 16%

Shares of BlackBerry took a significant hit, plummeting by 16% to 6.39 Canadian dollars ($4.69). The decline came after the company reported preliminary revenue results for the fiscal second quarter that fell below analysts' estimates. BlackBerry attributed this to delays in the closing of certain deals.

Other Market Movers

• BRP Group: The company's shares experienced a slight decline of 0.5% to C$101.50, following an earlier surge. BRP Group reported better-than-expected profit and revenue in the second quarter. However, it predicts that revenue for fiscal year 2024 will not reach previous expectations due to weakened demand in the boat market.

• ADF Group: Shares of ADF Group rose significantly by 9.4% to C$4.87 after the steel superstructures producer reported strong earnings growth in the latest quarter.

• Precision Drilling: Precision Drilling saw a modest increase of 1.1% in its shares, reaching C$92.33. The company announced plans to acquire CWC Energy Services in a deal worth approximately C$141 million in cash and stock.