Canadian stocks end lower despite positive manufacturing data

Canada's main stock market in Toronto ended an inconsistent week down despite positive July Manufacturing data as the health care and energy sectors slipped.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index dropped 56.02 points, or 0.39 percent, to close at 14,447.65 points. Eight of the TSX index's ten sub-sectors retreated during the trading day.

Earlier in the day, Statistics Canada released the results of their monthly manufacturing survey. The report containing July 2016 data indicated a 0.1 percent increase in sales with the primary metal (2.9 percent), petroleum and coal (2.5 percent) and food (1.9 percent) industries driving the increase.

Survey respondents were also asked for a third consecutive month whether the Fort McMurray wildfire in May had any effect on operations. 34 percent of the respondents that answered were still affected, down from 38 percent in June and 40 percent in May.

Dina Ignjatovic, Economist at TD Bank believes that the resumption of oil production in Fort McMurray will boost the economy in the near future.

"Oil sands production was essentially restored through the end of July, with petroleum and coal manufacturing likely to show further strength in the coming months as refining activity resumes fully," said Ignjatovic.

"We expect manufacturing volumes to remain strong in the coming months, helping to lift overall economic growth in the second half of the year and into 2017."

Meanwhile, oil prices continued to slide, with U.S. light sweet crude for October delivery falling 0.67 U.S. dollars to 43.91 dollars a barrel in New York. Crude oil has slipped 7.79 percent in the last eight days.

TSX Energy sector as a whole retreated 0.47 percent on the day, led by Calgary-based Crescent Point Energy Corp. falling 3.03 percent to 16.62 Canadian dollars (12.58 U.S. dollars) a share.

Health care was hit the hardest on Friday, dipping 1.57 percent. Pharmaceutical firm Concordia International Corp. saw shares plummet 18.63 percent to 7.12 Canadian dollars (5.39 U.S. dollars) after the proposal of new legislation that would prevent drug makers from charging exorbitant prices in United Kingdom.

The Canadian dollar fell to 0.7567 U.S. dollars, compared with Thursday's closing rate of 0.7602 U.S. dollars.

Source : XINHUA