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Toronto Stocks Slip, Bank of Nova Scotia Drops on Profit and Revenue Miss

By Adriano Marchese

 

Toronto stocks were slightly lower Tuesday, inching upward from morning lows.

Most sectors were lower. Health services and energy led declines, while consumer discretionary, materials and producer manufacturing were among the few gainers of the session.

Canadian bank earnings remain front and center. Bank of Nova Scotia was the worst performer after reporting lower-than-expected first-quarter profit and revenue because of booking higher provisions for credit losses and a federal tax expense in the quarter.

At midday, Canada's S&P/TSX Composite Index slipped 0.39% to 20181.09 and the blue-chip S&P/TSX 60 fell by 0.46% to 1214.66.

Bank of Nova Scotia shares were down 5% at 67.96 Canadian dollars ($50.06). The bank reported lower net income of C$1.77 billion, or C$1.36 a share, in the three months ended Jan. 31, compared with C$2.74 billion, or C$2.14 a share, a year ago.

Scotiabank paid C$579 million for the 2020 and 2021 tax years as part of a Canadian federal government initiative taxing all banks and insurers 15% on all profits over C$1 billion.

 

Other market movers:

 

Bank of Montreal shares fell 1.7% to C$128.66 as profit and revenue fell in the first quarter of its fiscal 2023.

Cronos Group Inc. shares were down 2.8% at C$2.78 after reporting a narrowed loss in the fourth quarter compared with the prior-year period when it booked a one-off impairment loss.

Shares of Manitou Gold Inc. jumped 80% to C$0.05 after Alamos Gold Inc. said it would acquire the Toronto-based gold mining company at nearly double its closing price on Monday.

 

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

 

(END) Dow Jones Newswires

February 28, 2023 12:27 ET (17:27 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

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