Monthly S&P/TSX Performance Review

Transcription

1 Monthly Market Snapshot AUGUST 2016 Equities Global Portfolio Advisory Group Monthly S&P/TSX Performance Review September 13, 2017 August 2017 The Materials and Industrials sectors lead the S&P/TSX to a small gain. The S&P/TSX Composite Index climbed 0.45% through the month of August on a price only basis. Of the 248 stocks in the index at month end, 128 rose and 120 fell. The small and large-cap indices underperformed the broader index, while the mid-cap index outperformed. The majority of S&P/TSX sectors rose through the month of August, while the Energy and Healthcare components headed in the opposite direction, declining 3.5% and 10.3%, respectively Index Returns (Price Only) August YTD S&P/TSX Composite 0.45% -0.50% S&P/TSX % -0.83% S&P/TSX Completion 1.38% 0.60% S&P/TSX Small Cap 0.10% -5.36% Top 10 Point Contributors Top 10 Point Detractors 1) Toronto Dominion Bank (+37.9) 1) Bank of Montreal (-23.8) 2) Franco-Nevada Corp. (+15.5) 2) Suncor Energy Inc. (-14.9) 3) Canadian National Railway Co. (+15.0) 3) Enbridge Inc. (-13.7) 4) Shopify Inc. (+14.4) 4) Manulife Financial Corp. (-13.7) 5) Teck Resources Ltd. (+13.8) 5) Canadian Imperial Bank of Commerce (-10.6) 6) Barrick Gold Corp. (+12.4) 6) Valeant Pharmaceuticals International Inc. (-8.9) 7) Fairfax Financial Holdings Ltd. (+11.3) 7) Encana Corp. (-6.4) 8) Agnico Eagle Mines Ltd. (+10.1) 9) Air Canada (+7.0) 8) Pembina Pipeline Corp. (-6.1) 9) Tourmaline Oil Corp. (-6.0) 10) Brookfield Asset Management Inc. (+6.9) 10) Cenovus Energy Inc. (-5.3) 8.0% 6.0% Materials 5.5% August 2017 Monthly S&P/TSX Composite Index Performance by Sector (Price only) 4.0% 2.0% 0.0% Industrials 3.0% Cons. Disc 1.6% Info Tech 1.5% Utilities 1.5% Real Estate 1.2% Telecom 1.0% S&P/TSX 0.4% Cons. Staples 0.4% Financials 0.1% -2.0% -4.0% -6.0% Energy -3.5% -8.0% -10.0% -12.0% Source: Bloomberg Healthcare -10.3% Registered trademark of The Bank of Nova Scotia, used under licence. Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank ); The Bank of Nova Scotia Trust Company (Scotiatrust ); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod, a division of Scotia Capital Inc. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

2 Global Portfolio Advisory Group Monthly S&P/TSX Performance Review // 2 Sector Monthly price-only return Monthly total return Financials 34.46% of S&P/TSX Composite +0.10% +0.26% Energy 19.56% of S&P/TSX Composite Materials 12.30% of S&P/TSX Composite Industrials 9.51% of S&P/TSX Composite Consumer Discretionary 5.31% of S&P/TSX Composite Telecommunications Services 5.01% of S&P/TSX Composite Consumer Staples 3.74% of S&P/TSX Composite Information Technology 3.28% of S&P/TSX Composite Utilities 3.28% of S&P/TSX Composite -3.52% -3.06% +5.45% +5.53% +2.99% +3.08% +1.62% +1.85% +1.04% +1.04% +0.44% +0.55% +1.48% +1.56% +1.48% +1.96% Notable Movement 14 of the Financials sector s 27 constituents rose through August. The others declined. Toronto-Dominion Bank (TD, +4.3%) was the largest point contributor in the sector through the month. Bank of Montreal (BMO, -5.2%) was the largest point detractor as U.S. costs weighed on the company s Q3F17 results. The Energy sector saw 42 of its 50 constituents fall through the month, while the remainder rose. Suncor Energy Inc. (SU, -3.8%) was the largest point detractor in August. Canadian Natural Resources (CNQ, +0.9%) was one of the few bright spots in the Canadian energy sector (and its biggest point contributor) in a month when WTI crude oil prices closed below US$50/bbl each day. Of the Materials sector s 56 constituents, 37 rose while the remaining 19 declined. Franco-Nevada (FNV, +13.1%) led the Materials sector in point contribution. The company said it expects to hit the higher end of its F17 guidance range. Potash Corp. of Saskatchewan Inc. (POT, -2.6%) was the biggest point laggard in the sector, the shares slumping steadily through August on little news. 17 of the sector s 26 constituents gained through the month, while the other 9 posted declines. Canadian National Railway Co. (CNR, +2.7%) was the sector s largest point contributor. CAE (CAE, -2.5%) dragged most heavily on the subindex, the stock recovering some of its losses at quarter-end following an analyst upgrade. The Consumer Discretionary sector saw 16 of its 21 constituents gain through the month of August, while the remaining 5 fell. Great Canadian Gaming Corp. (GC, +40%) was the sector s largest point contributor, rallying after winning a contract to operate three gaming facilities in the Greater Toronto Area. Cineplex Inc. (CGX, -22%), the sector s biggest point laggard, was hit hard following weak Q2F17 results. All 3 of the sector s constituents rose through August. Adding the most points to the sector s advance through the month was BCE Inc. (BCE, +1.6%), which reported slightly better than expected Q2F17 EPS. 6 of the Consumer Staples sector s 11 constituents advanced through the month, while the remaining 5 declined. Premium Brands Holdings Corp. (PBH, +9.5%) added the most points to the sector through August, the shares climbing higher midway through the month on the back of strong Q2F17 results. Metro (MRU, -2.0%) was the sector s largest point detractor, drifting lower in the back half of the month following lacklustre Q3F17 results. The Information Technology sector saw 9 of its 12 constituents fall, while the remaining 3 rose. The sector posted a monthly gain because the point contribution from the three performance leaders more than offset losses from the nine laggards. The sector s biggest point contributor, Shopify Inc. (SHOP, +20%), popped in early August as Q2F17 revenue beat estimates and the company raised its F17 guidance. The Utilities sector saw 9 of its 15 constituents advance through the month, while the other 6 declined. Emera (EMA, +3.4%) added the most points to the sector during the month of August, reporting solid Q2F17 results. TransAlta (TA, -5.7%) was the biggest point laggard in the sector, selling off after TA cut its F17 FCF guidance.

3 Global Portfolio Advisory Group Monthly S&P/TSX Performance Review // 3 Real Estate 2.95% of S&P/TSX Composite Health Care 0.60% of S&P/TSX Composite +1.22% +1.70% % % The Real Estate sector saw 14 of its 21 constituents gain through the month, while 7 fell. Point contributions were bookended by two apartment REITs. Canadian Apartment Properties (CAR.UN, +5.7%) led the sector in August. Boardwalk (BEI.UN, -16%) headed in the other direction after reporting another challenging quarter. 5 of the sector s 6 constituents fell and the other rose in August. Valeant (VRX, -18%) led the sector s point decline. Following an initial positive reaction post-q2f17 results, the shares continued their slide over the balance of the month.

4 Global Portfolio Advisory Group Monthly S&P/TSX Performance Review // 4 Disclosures This report is provided to you for informational purposes only. The report is not intended to provide personal investment advice and does not take into account the specific investment objectives, financial situation or particular needs of any specific person. Investors should seek advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. The pro forma and estimated financial information contained in this report, if any, is based on certain assumptions and management s analysis of information available at the time that this information was prepared, which assumptions and analysis may or may not be correct. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Opinions, estimates and projections contained in this report are our own as of the date hereof and are subject to change without notice. The ScotiaMcLeod Global Portfolio Advisory Group prepared this report by aggregating information from various sources as a resource for ScotiaMcLeod Wealth Advisers and their clients. Information may be obtained from the Equity Research and Fixed Income Research departments of the Global Banking and Markets division of Scotiabank. Information may also be obtained from the Foreign Exchange Research and Scotia Economics departments within Scotiabank. In addition to information obtained from members of the Scotiabank group, information may be obtained from the following third party sources: Standard & Poor s, Valueline, Morningstar, Bloomberg, and FactSet. The information and opinions contained in this report have been compiled or arrived at from sources believed to be reliable, but no representation or warranty, express or implied, is made as to their accuracy or completeness. While the information provided in this report is believed to be accurate and reliable, neither Scotia Capital Inc., which includes the ScotiaMcLeod Global Portfolio Advisory Group, nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Neither Scotia Capital Inc. nor its affiliates accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. Copyright 2017 Scotia Capital Inc.

5 Monthly Market Snapshot AUGUST 2016 Equities Global Portfolio Advisory Group Monthly S&P 500 Performance Review September 13, 2017 August 2017 S&P 500 ends the month slightly higher The S&P 500 Index rose 0.05% on a price only basis through the month of August. Of the 505 stocks in the index at month end, 241 rose and 266 declined including the two constituents removed from the index during the month. The Dow Jones Industrial Average and NASDAQ indices outperformed the S&P 500 in August, while the Russell 2000 underperformed. The benchmark index was split in terms of sector performance, with five sectors gaining and six declining during the month Index Returns (Price Only) August YTD S&P % 10.40% Dow Jones Industrial Average 0.26% 11.06% NASDAQ Composite 1.27% 19.42% Russell % 3.55% Top 10 Point Contributors Top 10 Point Detractors 1) Apple Inc. (+9.7) 1) The Walt Disney Co. (-1.5) 2) Microsoft Corp. (+2.2) 2) Exxon Mobil Corp. (-1.5) 3) Berkshire Hathaway Inc. (+1.4) 3) Wells Fargo & Co. (-1.3) 4) Gilead Sciences Inc. (+1.2) 4) AT&T Inc. (-1.1) 5) AbbVie Inc. (+1.0) 5) General Electric Co (-1.1) 6) Visa Inc. (+0.9) 6) The Priceline Group Inc. (-1.0) 7) UnitedHealth Group Inc. (+0.8) 7) Nike Inc. (-0.9) 8) Pfizer Inc. (+0.8) 8) Allergan PLC (-0.9) 9) Facebook Inc. (+0.8) 9) Schlumberger Ltd. (-0.8) 10) Bristol-Myers Squibb Co. (+0.7) 10) EOG Resources Inc. (-0.7) 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% Info Tech 3.2% Utilites 2.7% August 2017 Monthly S&P 500 Index Performance by Sector (Price only) Healthcare 1.6% Real Estate 0.9% Materials 0.8% S&P % Industrials -0.2% Cons. Staples -1.3% Financials -1.9% Cons. Disc. -2.0% Telecoms -3.1% -6.0% -7.0% Source: Bloomberg Energy -5.7% Registered trademark of The Bank of Nova Scotia, used under licence. Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank ); The Bank of Nova Scotia Trust Company (Scotiatrust ); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod, a division of Scotia Capital Inc. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

6 Global Portfolio Advisory Group Monthly S&P 500 Performance Review // 2 Sector Information Technology 23.51% of S&P 500 Index Health Care 14.66% of S&P 500 Index Monthly price-only return Monthly total return +3.24% +3.47% +1.64% +1.85% Notable Movement The Information technology sector saw 46 of its 68 constituents rise through the month, while the remaining 22 fell. Adding the most points to the sector through the month was Apple (AAPL, +10.7%). The company announced it would unveil new iphone models at a Sep. 12 event. Automatic Data Processing Inc. (ADP, -10.5%) was the largest point detractor through August. 40 of the sector s 62 month-end constituents rose in August. The others fell. Contributing the most points to the sector through the month was Gilead (GILD, +10.0%) as the company agreed to acquire Kite Pharma. Allergan (AGN, -9.1%) was the sector s biggest point laggard. Financials 14.23% of S&P 500 Index Consumer Discretionary 12.06% of S&P 500 Index Industrials 10.10% of S&P 500 Index Consumer Staples 8.48% of S&P 500 Index Energy 5.67% of S&P 500 Index Utilities 3.26% of S&P 500 Index Real Estate 2.98% of S&P 500 Index Materials 2.90% of S&P 500 Index -1.86% -1.61% -2.00% -1.84% -0.17% +0.15% -1.27% -1.06% -5.71% -5.18% +2.68% +3.25% +0.86% +1.14% +0.77% +0.89% Of the sector s 67 constituents at month end, 52 declined and the remaining 15 rose in August. The largest point laggard in the sector by month end was Wells Fargo (WFC, -5.3%) as an expanded review revealed more potentially problematic retail banking accounts. Berkshire Hathaway (BRK/B, +3.5%) was the largest point contributor to the sector in August. The sector saw 54 of its 84 month-end constituents tumble through the month, while 31 rallied including the 1 constituent removed in August. Detracting the most points from the sector was Disney (DIS, -7.9%). The company s Q3F17 results were poorly received, and DIS revealed plans to launch its own streaming platform. McDonald s Corp. (MCD, +3.1%) was the largest point contributor in August after announcing plans to have 4,500 locations in China by the end of Half of the sector s 68 constituents lost ground through August, and the other half gained. General Electric (GE, -4.1%) was the sector s largest point laggard. The sector s largest point contributor was Rockwell Collins (COL, +23%) as United Technologies showed interest in a possible acquisition. A transaction was announced in September. Of the Consumer Staples sector s 34 constituents at month end, 14 were up and 21 fell including the 1 constituent removed from the sector through August. Mondelez (MDLZ, -7.6%) was the biggest point drag on the sector; Procter & Gamble (PG, +1.6%) was the biggest contributor. The Energy sector saw 28 of its 32 constituents fall through the month, while only 4 recorded a gain. Cabot Oil & Gas Co. (COG, +2.7%) was the sector s largest point contributor following a month-end rally. Exxon Mobil (XOM, -4.6%) was the sector s most prominent point detractor. The Utilities sector saw 25 of its 28 constituents post a monthly gain with only 3 ending the month down. NextEra Energy Inc. (NEE, +3.0%) continued to rally and was the sector s biggest point contributor in August. Scana Corp. (SCG, -6.2%) tumbled through the month and was the biggest point drag in the sector, despite two analyst upgrades. The Real Estate sector saw 17 of 32 constituents decline through the month, while the remaining 15 rose. American Tower Corp. (AMT, +8.6%) added the most points to the sector as the stock extended its YTD rally. GGP Inc. (GGP, -8.2%) was the sector s biggest point laggard. Of the Materials sector s 26 constituents, 17 rose, while the remaining 9 fell through the month. Dow Chemical Co. (DOW, +3.8%) was the sector s biggest point

7 Global Portfolio Advisory Group Monthly S&P 500 Performance Review // 3 contributor as the company completed its merger with DuPont. Mosaic Co. (MOS, -17%) was the sector s biggest point laggard. The market ignored a Q2F17 earnings beat in the face of growing challenges highlighted by the Scotiabank GBM analyst. Telecommunication Services 2.14% of S&P 500 Index -3.08% -3.02% All four of the sector s constituents ended the month lower. AT&T Inc. (T, -4.0%) weighed most heavily on the sector as the company worked to close its proposed acquisition of Time Warner.

8 Global Portfolio Advisory Group Monthly S&P 500 Performance Review // 4 Disclosures This report is provided to you for informational purposes only. The report is not intended to provide personal investment advice and does not take into account the specific investment objectives, financial situation or particular needs of any specific person. Investors should seek advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. The pro forma and estimated financial information contained in this report, if any, is based on certain assumptions and management s analysis of information available at the time that this information was prepared, which assumptions and analysis may or may not be correct. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Opinions, estimates and projections contained in this report are our own as of the date hereof and are subject to change without notice. The ScotiaMcLeod Global Portfolio Advisory Group prepared this report by aggregating information from various sources as a resource for ScotiaMcLeod Wealth Advisers and their clients. Information may be obtained from the Equity Research and Fixed Income Research departments of the Global Banking and Markets division of Scotiabank. Information may also be obtained from the Foreign Exchange Research and Scotia Economics departments within Scotiabank. In addition to information obtained from members of the Scotiabank group, information may be obtained from the following third party sources: Standard & Poor s, Valueline, Morningstar, Bloomberg, and FactSet. The information and opinions contained in this report have been compiled or arrived at from sources believed to be reliable, but no representation or warranty, express or implied, is made as to their accuracy or completeness. While the information provided in this report is believed to be accurate and reliable, neither Scotia Capital Inc., which includes the ScotiaMcLeod Global Portfolio Advisory Group, nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Neither Scotia Capital Inc. nor its affiliates accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. Copyright 2017 Scotia Capital Inc.