(Updated 10:25 a.m. ET/1525 GMT)
Dec 23 (Reuters) – Canada’s main stock index fell on Monday due to broader losses led by real estate and telecom stocks, as investors analyzed key domestic data that failed to allay concerns about a weaker economy.
The Toronto Stock Exchange’s S&P/TSX composite index fell 62.79 points, or 0.26%, to 24,536.69.
Canada’s economy beat market expectations with 0.3% growth in October, but gross domestic product likely contracted in November, Statistics Canada (Statscan) data showed.
“I think what it (GDP data) will do is it can confirm or deny our prior beliefs,” said Josh Sheluk, portfolio manager at Verecan Capital Management.
“And it seems like right now, especially on the Canadian side, the expectation or the thought is that the economy is more likely to be on the weaker side.”
If November’s contraction is confirmed and GDP is unchanged in December, the economy could fall short of the Bank of Canada’s 2% growth projection for the fourth quarter.
Earlier this month, the Bank of Canada made its second straight rate cut of 50 basis points to allay concerns about tepid growth, while signaling a slower pace of cuts through 2025.
In addition, producer prices in Canada rose 0.6% in November compared to October, reflecting higher prices for lumber and other wood products, as well as petroleum and energy products.
Among sectors, the biggest sector losses were real estate and limited communications, each down 1.1%.
Conversely, the healthcare sector rose 2.3%, boosted by Tilray Brands, which rose 10.1% as the cannabis company extended its gains from the previous session.
Labor costs rose 80% after US fintech firm Fiserv confirmed its acquisition of the Canadian company in a C$201.5 million ($140 million) deal as it looks to expand payments offerings for gig economy workers, the company said. companies Monday.
(Reporting by Ragini Mathur; Editing by Krishna Chandra Eluri and Tasim Zahid)
