(Updated at 10:25 a.m. ET/ 1525 GMT)
Dec 23 (Reuters) – Canada’s main stock index fell on Monday due to wider losses led by real estate and telecom shares, while investors parsed key domestic data that failed to quell concerns about a weaker economy.
The Toronto Stock Exchange’s S&P/TSX composite index was down 62.79 points, or 0.26%, at 24,536.69.
Canada’s economy exceeded 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 may confirm or deny what our prior beliefs are,” said Josh Sheluk, portfolio manager at Verecan Capital Management.
“And it seems like at the moment, especially on the Canadian side, the expectation or the thought is that the economy is rather on the weaker side.”
If November’s contraction is confirmed and GDP remains 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 implemented a significant 50 basis point rate cut for the second consecutive time to address concerns about tepid growth, while indicating a slower pace of reductions in 2025.
Separately, producer prices in Canada were up 0.6% in November from October on higher prices for lumber and other wood products, as well as petroleum and energy products.
Among sectors, the real Estate and capped communications led the sectoral losses, each falling by 1.1%.
Conversely, the healthcare sector rose 2.3%, boosted by Tilray Brands, which surged 10.1% as the cannabis firm extended its gains from the previous session.
Payfare climbed 80% after U.S. 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 companies said on Monday.
(Reporting by Ragini Mathur; Editing by Krishna Chandra Eluri and Tasim Zahid)
