Toronto Stocks Slide as BoC Boosts Interest Rate, Dialogue Health Rises on 4Q Outlook

By Adriano Marchese

Stocks in Canada were moderately lower Wednesday as investors digest the latest quarter-point increase to rates by the Bank of Canada. The central bank increased its interest rate to 4.50%, and said it would now pause to assess the economic impact from sharply higher borrowing costs. Most sectors were lower in the session, with the biggest declines seen in energy, transportation and consumer durables. Of the few gainers, materials and communications saw the biggest gains. Dialogue Health Technologies Inc. shares rose after it said it expects to report higher revenue and narrowing losses on the back of a strong performance in its fourth quarter.

Canada's S&P/TSX Composite Index was down 0.46% at 20534.43, and the blue-chip S&P/TSX 60 inched 0.43% lower to 1237.05.

Dialogue Health Technologies Inc. shares were nearly 11% higher at 3.40 Canadian dollars ($2.54) after saying it expects revenue in the quarter to reach C$24.9 million, up from C$18.9 million and virtually in line with consensus expectations for the year. Adjusted loss before interest, taxes, depreciation and amortization is expected to narrow in the quarter to C$2.4 million, compared with an adjusted Ebitda loss of C$5.7 million at this time in 2021.

Other market movers:

EnCore Energy Corp. shares tumbled 10% to C$3.25 after it said it plans to raise C$30 million by way of an underwritten public offering of units.

Great-West Lifeco Inc. will seek to buy back up to 2.15% of its issued and outstanding common shares over the course of a one-year period. Shares were up 1% at C$34.65.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

01-25-23 1212ET