Toronto Stocks Retreat; ADF Shares Climb 20% as Revenue, Profit Rise

By Adriano Marchese

Toronto-listed stocks were in the red at midday on Thursday as hotter-than-expected inflation data from the U.S. has pushed back expectations for a rate cut in Canada, according to FactSet.

The Bank of Canada has said that while it's ready to begin rate cuts it's in no rush to do so.

Most sectors were trending lower, with the biggest declines coming in process industries, producer manufacturing and energy. Only health tech, health services and consumer services showed gains.

Canada's S&P/TSX Composite Index lost 0.7% to 22051.46 and the blue-chip S&P/TSX 60 fell 0.7% to 1320.68.

ADF Group shares rose 20% to 11.55 Canadian dollars ($8.44) after it reported a rise in revenue and profit that more-than-doubled in fiscal 2024. The company also said it would begin paying a C$0.01 per share semi-annual dividend.

Other market movers:

Richelieu Hardware's shares were down 2.4% to C$40.26 after it reported a decline in profit in the fiscal first quarter. The specialty hardware company continues to hold inventories that are selling below cost, weighing on margins.

Shares of Cineplex advanced 7.4% to C$7.95 after it said box office performance in March rose 46% to C$59.2 million compared with a year earlier. Revenue for the month nearly reached prepandemic levels, Cineplex said, as moviegoers went to see Dune: Part Two, Kung Fu Panda 4, and Godzilla x Kong: The New Empire.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

04-11-24 1239ET