The S&P/TSX Composite Index fell 112 points at midday on Friday with the telecommunications stocks the worst performer.
The telecommunications sector is down 3.1%. Telus (T.TO) shares fell 11% to a near 14-year low of C$13.41, with 28 million shares being traded.
The company, which reported a second-quarter earnings miss this morning, also slashed its dividend by 55% and ended its dividend reinvestment plan discount program.
The financials and industrials sectors were the outperformers at midday, gaining 0.73% and 0.78%, respectively.
In economic news, Canada's gross domestic product grew 0.3% in May, said Statistics Canada on Friday. The manufacturing sector also posted a 0.3% increase, which National Bank economists Matthieu Arseneau and Alexandra Ducharme described in a note as "encouraging given that it follows a 0.7% increase in April." The agency provided a flash estimate pointing to 0.2% growth in June.