Toronto Stocks Slide on Slower Canadian GDP Growth; Restaurant Brands International Rises on Earnings, Revenue Beat

By Adriano Marchese

Toronto-listed stocks were firmly in red territory mid-trading on Tuesday. On the macroeconomic side, Canada's economy lost momentum after a strong start to the year. With a GDP rise of 0.2% in March, growth is tracking below Bank of Canada's latest forecast, supporting expectations a first cut to interest rates could come before summer.

Most Canadian sectors were trending lower, with materials, energy and process industries stocks leading the decline. Only consumer services and health services posted any gains.

At midday, Canada's S&P/TSX Composite Index was 0.8% lower at 21832.12 and the blue-chip S&P/TSX 60 fell by 0.7% to 1308.25.

Shares in Restaurant Brands International trading in Toronto rose 4.2% to 105.06 Canadian dollars ($76.90) after the fast-food restaurant holding company reported better-than-expected adjusted earnings and revenue as Popeyes leads in growth. The quarterly results were accompanied with a plan invest an additional $300 million to modernize its Burger King restaurants across the U.S. as part of its Reclaim the Flame plan

Other market movers:

Ivanhoe Mines shares were 8.6% lower at C$18.86 after the Canadian miner reported a loss and lower revenue in the first quarter.

Shares of Canadian uranium producer Cameco were 6.8% lower at C$62.94 after it reported a loss and lower revenue, missing expectations of a rise in the first quarter.

NexGen Energy shares fell by 7.6% to C$10.66 after the company said it would be raising C$224 million in an upsized placement offering to Australian investors.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

04-30-24 1216ET