Consumer Durables News

Toronto Stocks Flat; Canadian Grocers Loblaw, Metro Climb on Inflation-Powered Sales Growth


By Adriano Marchese

Canadian stocks were flat in mid-trading on Wednesday after inching higher from moderate lows earlier in the morning.

The Canadian consumer price index remained unchanged in October at 6.9% year-over-year, just slightly below consensus expectations. Economists expect rate hikes by the Bank of Canada to remain on track.

In the session, most sectors were lower, with consumer durables, health services and energy the main laggards. Utilities, consumer services and tech posted the biggest gains.

Two of Canada’s largest retail grocers reported quarterly earnings Wednesday. Metro Inc. and Loblaw Cos. Ltd. both saw increased sales on the back of higher food inflation in Canada.

At midday, Canada’s S&P/TSX Composite Index was down 0.06% to 19986.18 and the blue-chip S&P/TSX 60 inched 0.08% higher to 1211.62.

Loblaw Cos. Ltd. had a 29% rise in profit and an 8.3% growth in sales, better-than-expected, in its third quarter, while Canadian households face higher food prices. Meanwhile, Metro Inc. booked impairments in its fourth quarter of fiscal 2022, which weighed on profit, while inflation supported better-than-expected sales growth as well. Shares of Loblaw rose 2.6% to C$110.04 and Metro shares climbed 2.1% to C$73.74.

Other market movers:

Restaurant Brands International Inc. shares rose by 7.1% to C$85.08 after the company said it appointed Patrick Doyle as its new executive chairman and that he would make a sizeable personal investment in the company.

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



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