Canadian Market Ends Weak Again; RBC, National Bank Shine On Strong Results

(RTTNews) - The Canadian market ended weak on Wednesday, extending losses from the previous session, as investors chose to take some profits ahead of a slew of crucial economic data, including reports on U.S. personal income and spending.

Strong results from Royal Bank of Canada and National Bank of Canada triggered some buying in the financials sector and helped limit market's downside.

The benchmark S&P/TSX Composite Index, which dropped to 23,063.68 around late afternoon, ended the day's session with a loss of 132.98 points or 0.57% at 23,126.98.

Materials and technology stocks were the major losers. The Materials Capped Index fell 2.07%, and the Information Technology Capped Index dropped 1.63%.

Royal Bank of Canada (RY.TO) ended up 2.2%. The bank reported a net income of $4.5 billion for the quarter ended July 31, 2024, up $626 million or 16% from the prior year. Diluted EPS was $3.09, up 13% over the same period. The bank reported adjusted net income and adjusted diluted EPS of $4.7 billion and $3.26 for the latest quarter, up 18% and 15%, respectively, from the prior year.

National Bank of Canada (NA.TO) climbed nearly 6% after the bank reported a net income of $1,033 million for the third-quarter of its current financial year, which is up 24% from $830 million it reported in the year-ago quarter. Third-quarter diluted earnings per share stood at $2.89 compared to $2.33 in the third quarter of 2023.

Materials shares Ivanhoe Mines (IVN.TO), Capstone Mining Corp (CS.TO), Ssr Mining (SSRM.TO), New Gold (NDG.TO), Aya Gold & Silver (AYA.TO), Oceanagold (OGC.TO), Pan American Silver Corp (PAAS.TO), First Majestic Silver (AG.TO) and Hudbay Minerals (HBM.TO) lost 3 to 6%.

Kinaxis Inc (KXS.TO) plunged 14.5% after the company announced some key management changes. Docebo Inc (DCBO.TO) dropped 5.5%. Lightspeed Commerce (LSPD.TO), Enghouse Systems (ENGH.TO), Shopify Inc (SHOP.TO), Open Text Corp (OTEX.TO), Constellation Software (CSU.TO) and Dye & Durham (DND.TO) also ended sharply lower.