Canopy Growth Corp Stocks Surge with Weed Stocks

(Bloomberg) -- Canadian stocks fell, following global markets lower as Turkey tacked on a spate of new tariffs on U.S. imports.

The S&P/TSX Composite Index fell 0.9 percent to 16,182.33 at 9:52 a.m. in Toronto. Materials led losses, dropping 2 percent as First Majestic Silver slumped 6.7 percent after second quarter adjusted loss per share was wider than expected.

Canopy Growth Corp. soared 32 percent, the most since November 2016. Constellation Brands Inc. is spending C$5 billion ($3.8 billion) to increase its stake in the cannabis grower in what the owner of Corona beer described as the biggest investment yet in the burgeoning marijuana industry.

In other moves:

Stocks

  • Health care surged 11.3 percent, the most since November 2016, as pot stocks followed Canopy’s gains. Aurora Cannabis Inc. climbed 22 percent and Aphria Inc. rose 17 percent
  • Great Canadian Gaming jumped 7.4 percent after second quarter adjusted Ebitda beat analyst estimates
  • Metro Inc. slumped 5.5 percent, the most in more than a year, amid reports that CEO Eric La Fleche said the grocer is starting to see higher price demands from suppliers on tariff-related price hikes

Commodities

  • Western Canada Select crude oil traded at a $28.40 discount to WTI
  • Aeco natural gas traded at a $1.83 discount to Henry Hub
  • Gold fell 1.1 percent to $1,188.00 an ounce

FX/Bonds

  • The Canadian dollar weakened 0.6 percent to C$1.3132 per U.S. dollar
  • The Canada 10-year government bond yield fell four basis points to 2.281 percent

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