The Financials Capped Index has fallen by close to 2.1%. Intact Financial Corporation’s shares are down 4.3% despite a second-quarter net income of C$720 million, a drop from C$867 million a year earlier. Major banks like Bank of Montreal, Canadian Imperial Bank of Commerce, and National Bank of Canada are all down between 2.5% and 2.7%.
Great-West Lifeco Inc, which posted earnings of C$1.039 billion, or C$1.15 per share, is seeing its stock fall 1.7%. Although the company outperformed its C$894 million, or C$0.96 per share, result from the same period last year, the share price remains under pressure today.
Mining and Industrial Losses
Allied Gold Corporation is down sharply by 17%, the largest decline in the sector. Mining Ventures all see declines between 4% and 7%. First Quantum Minerals reported second-quarter net earnings of $136 million, or $0.16 per share, but the stock is down despite a significant improvement from last year’s $18 million, or $0.02 per share.
In the industrial space, companies including Badger Infrastructure Solutions, Aecon Group, and Toromont Industries are down between 3% and 7%. Toromont’s second-quarter earnings reached C$124.5 million, or C$1.53 per share, the same as the prior year, yet the stock is still lower by 1.7%.
The Energy Capped Index has risen 2.6% as oil prices surge amid increased geopolitical risks. Cenovus Energy is up 4% after reporting second-quarter earnings of $1.53 per share, a big jump from $0.45 a year ago. Companies like Canadian Natural Resources and Vermilion Energy are among those gaining between 3% and 4%.
Parex Resources, Paramount Resources, and Arc Resources are also seeing strong gains. The rise in prices is being fueled by the joint U.S.-Saudi strikes in Iraq and concerns about an expanded U.S.-Iran conflict. Investors are also closely watching the upcoming Federal Reserve policy decision.