Canadian Market Rises Despite Weak GDP Data; BRP Surges on Strong Earnings

The Canadian market is up 0.46% despite weak GDP data, with stocks from materials and healthcare sectors contributing to gains. BRP Inc. rose 9% on strong earnings, while Corus Entertainment surged over 11%. Laurentian Bank and Celestica declined by more than 4% and 9%, respectively. Canopy Growth, Tilray, and Aurora Cannabis were down 4-6%.

The Canadian market has shown resilience, climbing 0.46% despite weak GDP data for the second quarter of 2025. The benchmark S&P/TSX Composite Index reached 28,566.15, buoyed by strong performances from the materials and healthcare sectors [2]. Key drivers of the market's positive sentiment include notable gains from Corus Entertainment, which surged over 11%, and BRP Inc., which reported a 9% increase in earnings [2].

The Canadian GDP contracted by 1.6% on a seasonally adjusted, annualized rate in the second quarter of 2025, reversing from the 2% growth rate in the previous period and missing market expectations of a 0.6% contraction [2]. Despite this, the market has shown optimism, with several stocks from consumer staples, consumer discretionary, and financial sectors contributing to the gains.

However, not all sectors performed positively. Laurentian Bank and Celestica both experienced significant declines, down by more than 4% and 9%, respectively. Laurentian Bank reported a net income of $37.5 million for the third quarter of 2025, compared to $34.1 million for the same period in 2024, but this did not prevent a decline in stock price [2]. Celestica, a contract manufacturer, also faced a significant drop, highlighting the sector's cyclical volatility [3].

The cannabis sector also saw a decline, with Canopy Growth, Tilray, and Aurora Cannabis down 4-6%, respectively. This sector has been facing challenges, including regulatory issues and market saturation [2].

The market's performance reflects a mix of short-term optimism and long-term concerns. While the materials and healthcare sectors have shown strong performance, the broader economic indicators suggest that the market may face headwinds in the coming quarters.

References:
[1] https://stockhouse.com/news/market-updates/2025/08/29/market-open-tsx-futures-dip-on-dim-gdp-estimates-friday-aug-29
[2] https://www.nasdaq.com/articles/canadian-market-positive-territory-brp-rises-sharply-strong-earnings
[3] https://www.ainvest.com/news/celestica-valuation-parity-nvidia-warning-sign-investors-2508/