TSX Trades Flat; Cannabis Stocks Soar; Canadian Home Sales Decline in August

By Ketki Saxena

Investing.com -- Canada’s main stock index, the S&P/TSX composite index traded flat by afternoon trading, after touching a more than six week high earlier in the day.

The commodity heavy Canadian index was supported by gains in metals, after upbeat economic data from China touched a more than six-week high on Friday after upbeat factory output and retail sales boosted hopes of a stabilizing Chinese economy.

Wall Street indices meanwhile traded in the red as chip-makers fell after TSMC, the world's top semiconductor firm, requested vendors to delay chip equiptment deliveries. A strike from auto workers meanwhile pressured auto stocks.

Real estate also weighed on the Canadian index after data showing that showed Canadian home sales fell in August.

Toronto Stock Market News

Cannabis stocks including Aurora Cannabis (TSX:ACB) and Canopy growth rallied on optimism marijuana reform in the states, ahead of a session for the Secure and Fair Enforcement (SAFE) Banking Act to held by The Senate Banking Committee on September 27. If approved by the Committee, the proposal would progress to the Senate for a full vote.

Tilray (TSX:TLRY) Brands shares also rose following an announcement from Entourage Health Corp that it will now source bulk cannabis from Tilray following Tilray's acquisition of Hexo (TSX:HEXO).

Canadian grocers meanwhile faced a moderate decline after an announcement from Prime Minister Justin Trudeau around the possibility of new taxes on grocers as an incentive for the companies to offer strategies to ease food inflation.

For earnings, view our earnings calendar.

Canadian Stocks Moving Markets Today

Top Gainers on the TSX Today:

• IAMGold Corporation (TSX:IMG)
• Brookfield Business (TSX:BBUC)
• Lithium Americas (TSX:LAC)

Top Losers on the TSX Today:

• Dye & Durham Ltd (TSX:DND)
• Celestica Inc (TSX:CLS)
• Bombardier (TSX:BBDb)

For all Canadian Stocks Moving Markets today, view our Canada Markets Page.

In Canadian Economics

Statistics Canada said foreign investment in Canadian securities totallled $11.6 billion in July, while Canadian investors acquired $2.6 billion of foreign securities.

Data from the Canadian Real Estate Association showed that national home sales declined 4.1% month-over-month in August. Actual (not seasonally-adjusted) monthly activity came in 5.3% higher on a year over year basis.

For all Canadian economic releases, view our economic calendar.

All currencies CAD, unless stated otherwise.