Toronto Stocks Retreat, Bank of Nova Scotia Slides on 1Q Profit Decline

By Adriano Marchese

Toronto stocks were lower on Tuesday. Attention turned to Canadian bank earnings, which continued with Bank of Nova Scotia reporting lower earnings as provision for credit losses rose.

On the macroeconomic front, producer prices in Canada rose 1.5% in April, driven by increases in unwrought gold and silver alloys, while Canadian companies paid more for raw materials.

Most sectors were trending lower, led by commercial services, health services and transportation. Of the few gainers, energy, tech and materials led.

At midday, Canada's S&P/TSX Composite Index was down 0.3% to 22309.55 and the blue-chip S&P/TSX 60 fell by 0.4% to 1332.01.

Bank of Nova Scotia logged weaker earnings in the latest quarter thanks mainly to a rise in loan-loss provisions, which offset increased revenue. While adjusted earnings were above expectations, the dividend remained flat, missing expectations. Shares were down 0.5% to 66.24 Canadian dollars ($48.58).

Other market movers:

CAE shares were down 1.7% to C$25.28 after the Canadian simulation technology company reported a loss and lower-than-expected revenue in the fourth fiscal quarter as legacy contracts continue to weigh on performance.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 28, 2024 12:37 ET (16:37 GMT)

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