Canadian Market Remains Weak Despite Recovering From Early Setback

(RTTNews) - After a weak start and a subsequent fall to lower levels, the Canadian market regained some lost ground Tuesday morning, but remained in negative territory around noon with losses in energy, materials and healthcare sectors contributing to the weakness.

Investors are also reacting to quarterly earnings updates from Bank of Montreal (BMO) and Bank of Nova Scotia (BNS.TO).

The benchmark S&P/TSX Composite Index, which tumbled to 23,185.74, is down 84.53 points or 0.36% at 23,264.44 a few minutes before noon.

Bank of Montreal (BMO.TO) shares are down nearly 6.5%. The bank reported a net income of $1,865 million for the third-quarter of this financial year, compared with $1,565 million a year ago. Adjusted net income came in at $1,981 million in the latest quarter, compared to $2,148 million the previous year's third quarter.

Bank of Nova Scotia (BNS.TO) is gaiing about 1.7%. BNS reported third-quarter net income of $1,912 million, compared to $2,192 million a year ago. Adjusted net income for this year's third quarter came in at $2,191 million, compared to $2,207 million a year ago.

In the energy sector, International Petroleum Corp (IPCO.TO) is down 4.2%. Precision Drilling Corp (PD.TO), Kelt Exploration (KEL.TO), Birchcliff Energy (BIR.TO), Ces Energy Solutions (CEU.TO), MEG Energy Corp (MEG.TO), Suncor Energy (SU.TO) and Nuvista Energy (NU.TO) are down 1.7 to 2.3%.

Africa Oil Corp (AOI.TO) is down nearly 3%. Africa Oil Corp has signed a call and put option agreement with three shareholders in Impact Oil and Gas Limited to purchase a material 7.0% interest in Impact. If exercised, the Option Agreement will increase Africa Oil's Impact shareholding to 39.5%.

Among materials stocks, Interfor Corp (IFP.TO), Novagold (NG.TO), Equinox Gold Corp (EQX.TO), Canfor Corp (CFP.TO), Ssr Mining (SSRM.TO), Osisko Gold Royalties (OR.TO) and B2Gold Corp (BTO.TO) are down 1.7 to 3.2%.

Healthcare stock Tilray Inc (TLRY.TO) is down nearly 6%. Bausch Health Companies (BHC.TO) is modestly lower.

On the economic front, data from Statistics Canada showed wholesale sales in Canada fell by 1.1% month-over-month in July, following a 0.6% decline in June, according to preliminary estimates.