Canadian Market Headed For Another Weak Close

(RTTNews) - The Canadian market looks headed for another weak close, with stocks falling deeper into the red Wednesday afternoon after the Federal Reserve signaled fewer interest rate cuts next year than previously expected.

The Fed lowered interest rate by 25 basis points today as widely expected. The central bank described the economic outlook as "uncertain" and said the risks to both sides of its dual mandate are "roughly in balance."

The central bank's latest projections suggest rates will be in a rage of 3.75 to 4% by the end of 2025 compared to the range of 3.25 to 3.5% forecast in September.

The Canadian benchmark S&P/TSX Composite Index was down 197 points or 0.79% at 24,922.71 a little while ago.

Materials, communications, real estate and utilities stocks are among the notable losers. Consumer discretionary, financials and technology stocks are also mostly weak.

Hut 8 Corp (HUT.TO) is down 5.4%. Bombardier Inc (BBD.B.TO), Telesat Corporation (TSAT.TO), Brookfield Infrastructure (BIPC.TO), Propel Holdings (PRL.TO), Linamar Corporation (LNR.TO), Shopify Inc (SHOP.TO) and Newmont Corporation (NGT.TO) are lower by 2 to 4%.

CCL Industries (CCL.A.TO), Rogers Communications (RCI.B.TO), Premium Brands Holdings Corporation (PBH.TO), BRP Inc (DOO.TO), Dollarama Inc (DOL.TO), Agnico Eagle Mines (AEM.TO), Colliers International (CIGI.TO), AtkinsRealis (ATRL.TO) and Onex Corporation (ONEX.TO) are down 1 to 1.9%.

Organigram Holdings Inc. (OGI.TO) is down more than 3%. The company reported a narrower net loss for the fourth quarter, helped by increased revenue and a decline in costs. For the three-month period to September 30, the firm recorded a net loss of C$5.433 million, compared with a loss of C$26.595 million, registered for the same period last year.

Torex Gold Resources (TXG.TO) is gaining nearly 11%. GFL Environmental (GFL.TO) is up 3.75%, while Boralex (BLX.TO), Pet Valu Holdings (PET.TO), Toromont Industries (TIH.TO), Canadian Pacific Kansas City (CP.TO) and Aritzia Inc (ATZ.TO) are gaining 1 to 2.3%.

Canadian Western Bank (CWB.TO) is advancing more than 1%, despite reporting lower earnings for the fourth quarter. The bank reported fourth quarter net income of $62 million and adjusted EPS of $0.67, down 19% and 29%, respectively, compared to the same quarter last year.