Toronto Stocks Retreat; BCE shares on lower earnings, big layoffs, divestitures – Feb 08, 2024 12:27 PM EST

Written by Adriano Marchese

Average trading in Toronto-listed stocks fell sharply on Thursday. According to FactSet, the message from the Bank of Canada's discussion on Wednesday raised concerns about a rate cut as “the final phase of the fight against inflation is fraught with risks.”

Most sectors were in the red during the session, with the biggest losses coming from the technology sector, followed by communications and manufacturing. Energy and retail trade were among those that increased slightly.

Canada's S&P/TSX composite traded 0.63% lower at 20,837.11, while the blue chip S&P/TSX 60 was down 0.50% at 1,258.21.

Shares of telecoms giant BCE fell 4.1% to C$50.91 ($37.81) after it said it would cut its workforce by 9%, or 4,800, as part of a transformation and cost-cutting drive. In the fourth quarter, BCE reported a drop in profit and an increase in revenue in the fourth quarter.

Other market movers:

Shares in Toronto-based Thomson Reuters rose 2.8% to C$206.60 after the Canadian news and information provider said it aims to increase revenue growth in the coming years after boosting earnings in the fourth quarter due to higher investment costs. In the London Stock Exchange group.

Bombardier shares fell about 14% to C$44.85 after reporting a drop in fourth-quarter profit despite better-than-expected revenue growth. By 2024, the company has set goals to deliver more aircraft and earn more revenue than in 2023.

Cineplex posted a loss in the fourth quarter, while revenues rose due to higher movie attendance during the period. Shares fell 7.3% to C$7.61.

Shares of Lightspeed Commerce fell 18% to C$21.58 in Toronto after it said it was cautious about the near-term outlook despite better-than-expected third-quarter results and full-year guidance. Adjusted revenue and earnings in the fiscal third quarter beat expectations and beat its targets for the company's key measure of adjusted earnings before interest, taxes, depreciation and amortization.

Write to Adriano Marchese at [email protected]

(End) Dow Jones Newswires

02-08-24 1226ET