Most major indices, including the TSX, fell yesterday, as investors expressed concerns over a sluggish global economic recovery. The S&P/TSX Composite Index fell marginally fell by 0.07% on September 7. Comparatively, the S&P 500 and the Dow Jones lost 0.34% and 0.76%, respectively. However, the tech-heavy NASDAQ Composite Index rose by 0.07%.
Canada’s consumer confidence numbers declined for the third straight week due to a slower-than-expected economic revival, according to the Bloomberg Nanos Canadian Confidence Index.
Cineplex stock gains over 5%
One of the top-performing Canadian stocks was Cineplex (TSX:CGX), which gained over 5% yesterday. Canada has lifted several restrictions in the past month, which seems to have driven investor optimism higher. Cineplex stock has lost still 60% in market value since January 2020, despite rising 40% year to date.
Cineplex sales are forecast to more than triple to $262 million in the quarter ending in September, and Bay Street expects the company to narrow its loss to $0.56 per share from $1.91 per share in the year-ago period.
However, investors should also note that Canada is once again experiencing a spike in COVID-19 infections, which might weigh heavily on Cineplex in the near term.
Enbridge acquires Moda Midstream for US$3 billion
Canada’s energy infrastructure giant Enbridge (TSX:ENB)(NYSE:ENB) disclosed the acquisition of U.S.- based Moda Midstream for a deal valued at US$3 billion. The acquisition is expected to advance Enbridge’s U.S. Gulf Coast “export strategy and connectivity to low-cost and long-lived reserves in the Permian and Eagle Ford basins.”
Enbridge explained the transaction is valued at eight times forward EBITDA, which means the acquisition should add around US$400 million to Enbridge in the next year.
Bitcoin price pullback
At the time of writing, the price of one Bitcoin was $46,926 down from its day high of $52,960, as El Salvador became the first country to accept the cryptocurrency as legal tender. Purpose Bitcoin ETF lost 7.77% to end the day at $9.62 per unit.
The selloff in Bitcoin expectedly impacted other digital assets, including Ethereum, which lost 13% in market value. Canadian companies that mine Bitcoin and other cryptocurrencies also felt the heat. Hut 8 Mining stock fell 4.5%, while Hive Blockchain Technologies lost 6.4% in market cap.
Canadian cannabis stocks continue to underperform
Several Canadian marijuana stocks again ended the day in the red, as The Green Organic Dutchman Holdings fell 8.7%. Cannabis giants, including Aurora Cannabis, HEXO, and Cronos Group also fell by 2.4%, 1.7%, and 1.1%, respectively.
Horizons Marijuana Life Sciences declined by 0.8% on September 7. The popular Canadian marijuana index has gained close to 13% in 2021 but is still down 59% from all-time highs.
Marijuana producers in Canada have burnt massive investor wealth in the last 30 months due to factors that include shareholder dilution, widening losses, high inventory levels, and competition from a low-cost black market.