Monthly S&P/TSX Performance Review

Transcription

1 Equities Global Portfolio Advisory Group Monthly Market Snapshot AUGUST 2016 Monthly S&P/TSX Performance Review October 5, 2017 September 2017 Energy and Consumer Discretionary sectors lead in a strong month for Canadian equities The S&P/TSX Composite Index climbed 2.78% through the month of September on a price only basis. Of the 251 stocks in the index at month end, 159 rose and 92 fell. Three constituents were added during the month of September. The small and mid-cap indices 8.0% 6.0% underperformed the broader index, while the large-cap index outperformed. The materials component weighed most heavily on the index, pressured by a decline in some metals prices. Energy 7.4% Cons. Disc. 5.5% Healthcare 5.2% 2017 Index Returns (Price Only) S&P/TSX Composite S&P/TSX 60 S&P/TSX Completion S&P/TSX Small Cap Top 10 Point Contributors 8) Encana Corp. (+21.7) September September 2017 Monthly S&P/TSX Composite Index Performance by Sector (Price only) YTD 2.78% 2.27% 3.28% 2.42% 1.30% 1.91% 1.78% -3.68% Top 10 Point Detractors 1) Suncor Energy Inc. (+56.1) 1) Barrick Gold Corp. (-20.6) 2) Toronto-Dominion Bank (+43.0) 2) Teck Resources Ltd. (-16.3) 3) Royal Bank of Canada (+40.9) 3) Agnico Eagle Mines Ltd. (-12.9) 4) Canadian Natural Resources Inc. (+28.4) 4) Alimentation Couche-Tard Inc. (-8.1) 5) Enbridge Inc. (+26.4) 5) TransCanada Corp. (-7.1) 6) Bank of Montreal (+22.9) 6) Wheaton Precious Metals Corp. (-6.9) 7) Bank of Nova Scotia (+21.9) 7) Franco-Nevada Corp. (-6.9) 9) Cenovus Energy Inc. (+20.8) 8) Goldcorp Inc. (-5.9) 9) First Quantum Minerals Ltd. (-5.3) 10) Canadian Imperial Bank of Commerce (+17.6) 10) Detour Gold Corp. (-4.8) 4.0% Financials 3.8% Industrials 3.4% Info Tech 2.8% S&P/TSX 2.8% 2.0% 0.0% -2.0% -4.0% -6.0% Source: Bloomberg Cons. Staples -0.3% Real Estate -1.1% Telecom -1.3% Utilities -2.3% Materials -4.0% 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 34.39% of S&P/TSX Composite +3.77% +3.94% Notable Movement 24 of the Financials sector s 27 constituents rose through September while only 3 declined. Toronto-Dominion Bank (TD, +4.8%) was the largest point contributor in the sector through the month. ONEX Corp. (Onex, -3.6%) was the largest point detractor. Energy 20.36% of S&P/TSX Composite Materials 11.47% of S&P/TSX Composite Industrials 9.46% of S&P/TSX Composite Consumer Discretionary 5.44% of S&P/TSX Composite Telecommunication Services 4.76% of S&P/TSX Composite Utilities 3.82% of S&P/TSX Composite Consumer Staples 3.58% of S&P/TSX Composite Information Technology 3.27% of S&P/TSX Composite +7.35% +7.70% -4.01% -3.82% +3.43% +3.73% +5.50% +5.63% -1.33% -0.24% -2.28% -1.96% -0.32% -0.13% +2.79% +2.84% The Energy sector saw 45 of its 51 constituents climb through the month, while 6 fell. Suncor Energy Inc. (SU, +12%) was the largest point contributor in September on the back of a rally in the price of WTI crude oil, which closed above US$52/bbl twice during the month. TransCanada Corp. (TRP, -2.7%) was one of only a few energy companies to lose ground in September. Of the Materials sector s 56 constituents, 34 fell while the remaining 22 rose. Barrick Gold Corp. (ABX, -10.7%) was the biggest laggard in the sub index, as gold prices tumbled -2.8% during the month. Potash Corp. of Saskatchewan Inc. (POT, +10.5%) was the biggest point contributor in the sector. 20 of the sector s 26 constituents gained through the month, while the other 6 posted declines. Canadian Pacific Railway Ltd. (CP, +7.9%) was the sector s largest point contributor. Bombardier Inc. (BBD.B, -9.6%) was the sector s worst performer as a trade dispute with Boeing weighed on the stock in the latter portion of the month. The Consumer Discretionary sector saw 13 of its 22 constituents gain through the month of September, while the remaining 9 fell. One company was added to the sector during the month. Magna International Inc. (MG, +10.8%) was the sector s largest point contributor for the month of September. DHX Media Ltd. (DHX.B, -21%), the sector s biggest point laggard, was hit hard after issuing weak Q4F17 results and F18 guidance. Two of the sector s three constituents finished September lower than they started, while one gained. BCE Inc. (BCE, -1.7%) was the sector s biggest point laggard. The Utilities sector saw 12 of its 16 constituents decline through the month and the other 4 rise. One constituent was added during the month. Fortis Inc. (FTS, -2.0%) was the biggest point laggard in the sector for the month of September. Brookfield Infrastructure Partners LP (BIP.un) was added to the sector after markets closed on 15 Sep/2017 and was its biggest point contributor. 7 of the Consumer Staples sector s 11 constituents advanced through the month, while the remaining 4 declined. Alimentation Couche-Tard Inc. (ATD.B, -4.6%) was the worst performer in the sub-index, largely a result of Metro and Jean Coutu confirming they were in talks about a possible combination transaction (an acquisition was announced in early October). Metro (MRU, +4.1%) was the sector s largest point contributor. The Information Technology sector saw 9 of its 12 constituents rise, while the remaining 3 fell. The sector s biggest point contributor, BlackBerry Ltd. (BB, +21%), popped in late September after earnings for Q2F2018 beat expectations. Constellation Software Inc. (CSU, -2.0%) was the sector s biggest point laggard.

3 Global Portfolio Advisory Group Monthly S&P/TSX Performance Review // 3 Real Estate 2.85% of S&P/TSX Composite Health Care 0.61% of S&P/TSX Composite -1.09% -0.66% +5.23% +5.34% The Real Estate sector saw 12 of its 21 constituents lose ground through the month, while 9 ended up in the green. Point contributions were bookended by losses from FirstService Corp. (FSV, -5.8%) and gains in Allied Properties REIT (AP.UN, +2.9%). 5 of the sector s 6 constituents gained during the month of September, with only one, ProMetic Life Sciences Inc. (PLI, -1.8%), declining. Valeant (VRX, +6.5%) led the sector s advance.

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 October 5, 2017 September 2017 Energy leads a broad advance for the S&P 500 The S&P 500 Index rose 1.93% on a price only basis through the month of September. Of the 505 stocks in the index at month end, 341 rose, 165 declined and 2 were unchanged, including the three constituents removed from the index during the month. The Dow Jones Industrial Average and Russell 2000 indices outperformed the S&P 500 in September, while the NASDAQ Composite underperformed. The S&P 500 enjoyed a widespread rally as 8 of 11 sectors ended the month higher Index Returns (Price Only) S&P 500 Dow Jones Industrial Average NASDAQ Composite Russell 2000 Top 10 Point Contributors September 1) Exxon Mobil Corp. (+2.8) 1) Apple Inc. (-6.0) YTD 1.93% 12.53% 2.08% 13.37% 1.05% 20.67% 6.09% 9.85% Top 10 Point Detractors 2) AbbVie Inc. (+2.5) 2) Comcast Corp. (-1.2) 3) Chevron Corp. (+2.2) 3) Allergan PLC (-1.0) 4) Wells Fargo & Co. (+2.1) 4) Amazon Inc. (-0.9) 5) JPMorgan Chase & Co. (+1.9) 5) Philip Morris International Inc. (-0.9) 6) Home Depot Inc. (+1.9) 6) Charter Communications Inc. (-0.9) 7) Bank of America Corp. (+1.7) 7) Johnson & Johnson (-0.7) 8) Intel Corp. (+1.7) 8) PepsiCo Inc. (-0.7) 9) Citigroup Inc. (+1.5) 9) Oracle Corp. (-0.7) 10) Pfizer Inc. (+1.2) 10) American Tower Corp. (-0.5) 12.0% 10.0% Energy 9.8% September 2017 Monthly S&P 500 Index Performance by Sector (Price only) 8.0% 6.0% 4.0% 2.0% Financials 5.1% Industrials 3.8% Telecoms 3.5% Materials 3.3% S&P % Healthcare 0.9% Cons. Disc. 0.8% Info Tech 0.6% 0.0% -2.0% -4.0% Source: Bloomberg Cons. Staples -1.1% Real Estate -1.9% Utilities -3.0% 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 23.23% of S&P 500 Index Financials 14.61% of S&P 500 Index Health Care 14.51% of S&P 500 Index Consumer Discretionary 11.85% of S&P 500 Index Industrials 10.23% of S&P 500 Index Consumer Staples 8.23% of S&P 500 Index Energy 6.09% of S&P 500 Index Utilities 3.12% of S&P 500 Index Real Estate 2.99% of S&P 500 Index Monthly price-only return Monthly total return +0.59% +0.64% +5.05% +5.14% +0.86% +0.99% +0.75% +0.84% +3.84% +4.00% -1.14% -0.86% +9.77% +9.94% -3.00% -2.74% -1.86% -1.39% Notable Movement The sector saw 48 of its 69 month-end constituents rise through September, while 21 fell and 1 remained unchanged including 1 issuer removed from the sector during the month. Adding the most points to the sector through the month was Intel Corp. (INTC, +8.6%). Apple Inc. (AAPL, -6.0%) was the sector s biggest point laggard, declining after releasing the latest iterations of its iphone. Of the sector s 67 constituents at month end, 64 climbed higher while only 3 slipped lower. The largest point contributor in the sector by month end was Wells Fargo (WFC, +8.0%) despite a continuing probe into its sales practices. Everest RE Group (RE, -9.5%) was the largest point detractor after the reinsurer fell sharply as damages were tallied in the wake of recent hurricanes. 33 of the sector s 62 month-end constituents rose in September. The other 29 fell. Contributing the most points to the sector through the month was AbbVie Inc. (ABBV, +18%). Allergan (AGN, -10.7%) was the sector s biggest point laggard as the company orchestrated an unusual patent deal with the Saint Regis Mohawk Tribe. The sector saw 52 of its 83 month-end constituents rise through the month, while 32 sold off and one was unchanged, including the 2 constituents removed in September. Home Depot Inc. (HD, +9.1%) was the sector s best performing constituent. Comcast Corp. (CMCSA, -5.3%) trailed its peers during September as the service provider signalled Q3F17 video subscriber losses owing to competition and Hurricane Harvey. 58 of the 68 companies in the Industrials sub-index finished in the green through the month of September, while only 10 finished lower. Union Pacific Corp. (UNP, +10.1%) led the sector in point contribution, rallying along with other railway stocks. The sector s worst performer was Equifax Inc. (EFX, -26%). The company announced a data breach that potentially affected approximately 143 million Americans. Of the Consumer Staples sector s 34 constituents at month end, half gained and the other half declined. Philip Morris International Inc. (PM, -5.1%) was the sector s largest point laggard. Adding the most points to the sub-index this month was CVS Health Corp (CVS, +5.2%). The stock benefitted from a favourable mention in Barron s regarding the sustainability of its dividend. The Energy sector saw 31 of its 32 constituents rise through the month, with only one ending the month in the red, as the price of WTI crude oil climbed steadily through September. Exxon Mobil (XOM, +7.4%) was the sector s most prominent point contributor, while Kinder Morgan Inc. (KMI, -0.8%) was the only point detractor. The Utilities sector saw 25 of its 28 constituents post a monthly loss with only 3 ending the month in positive territory. A rise in long-term interest rates may have weighed on the sector. Duke Energy Corp. (DUK, -3.9%) was the largest point laggard. The Southern Co. (SO, +1.8%) led the sector in point contribution, recovering near the end of the month after being upgraded to Outperform at RBC. 18 of the 33 constituents in the Real Estate sub-index edged lower through September, with the remaining 15 trending upward. American Tower Corp. (AMT, -7.7%) was the sector s biggest point laggard. Public Storage (PSA, +4.2%) recovered from a post-hurricane sell-off to end September as the sector s biggest point contributor.

7 Global Portfolio Advisory Group Monthly S&P 500 Performance Review // 3 Materials 2.98% of S&P 500 Index Telecommunication Services 2.17% of S&P 500 Index +3.33% +3.52% +3.52% +3.52% Of the Materials sector s 25 constituents, 18 rose, while the remaining 7 fell through the month. DowDuPont Inc. (DWDP, +3.9%) was the sector s biggest point contributor, the shares rallying after the company revised its spin-off plans. EcoLab Inc. (ECL, -3.5%) was the sector s biggest point laggard as the company guided to lower Q3F17 and F17 earnings in the wake of Hurricane Harvey. Two of the sector s four constituents rose through September while the other two declined. AT&T Inc. (T, +4.6%) added the most points to the sub-index, while CenturyLink (CTL, -4.2%) was the biggest point detractor.

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.