Canadian Market Recovers After Early Weakness; Energy Stocks Drop On Weak Oil Prices

(RTTNews) - Despite data showing another drop in the nation's consumer price inflation, the Canadian market drifted lower Tuesday morning with energy stocks losing ground following a sharp drop in crude oil prices. The market's downside was limited thanks to strong buying at several counters in healthcare, utilities, communications and real estate sectors.

The benchmark S&P/TSX Composite Index, which dropped to 24,357.87, losing more than 110 points in the procces, recovered gradually and is up 6.03 points or 0.02% at 24,477.20 about half an hour past noon.

Data from Statistics Canada said the annual inflation rate in Canada fell to 1.6% in September from 2% in the previous month, the lowest since February 2021. The consumer price index decreased 0.4% in September over the previous month.

The annual core inflation rate in Canada ticked up to 1.6% in September from a 3-1/2-year low of 1.5% in the prior month. On a monthly basis, core consumer pries were flat, after falling by 0.1% in the prior month.

A separate data from Statistics Canada said wholesale sales in Canada declined 0.6% month-over-month to $81.9 billion in August, less than preliminary estimates of a 1.1% drop, following a downwardly revised 0.3% rise in July.

The Energy Capped Index is down 4.27% with several stocks in the sector declining sharply as oil prices tumbled nearly 5% on reports Israel assured the U.S. that it wouldn't target Iran's oil or nuclear sites.

International Petroleum Corp (IPCO.TO) is down more than 7%. MEG Energy (MEG.TO), Baytex Energy (BTE.TO), Kelt Exploration (KEL.TO), Vermilion Energy (VET.TO), Headwater Exploration (HWX.TO), Cenovus Energy (CVE.TO), Nuvista Energy (NVA.TO), Suncor Energy (SU.TO) and Canadian Natural Resources (CNQ.TO) are down 4 to 7%.

Technology stock Celestica Inc (CLS.TO) is down nearly 4%. Coveo Solutions (CVO.TO) is down 3%, while Dye & Durham (DND.TO), Constellation Software (CSU.TO) and Shopify Inc (SHOP.TO) are down 1 to 2%.

Atco Ltd. (ACO.Y.TO) is up with a hefty gain of 13%. MTY Food Group (MTY.TO), Dayforce (DAY.TO), Agnico Eagle Mines (AEM.TO), Bombardier Inc (BBD.B.TO), Descartes Systems Group (DSG.TO), RB Global (RBA.TO), Waste Connections (WCN.TO), WSP Global (WSP.TO) and Thomson Reuters Corporation (TRI.TO) are gaining 1 to 4.5%.