Markets

Canadian Market Update: Volumes Elevated

WHAT HAPPENED:

  • The TSX lost 1.6%, unable to hold the technically significant 15,600 level; outperformed a 2% loss in the S&P500 .
  • Volumes were elevated and Small Caps underperformed though losses were broad-based.
  • CA Tech continues to surge (heavy ETF support), a 1.2% gain took the sector to a ~12% YTD gain . Defensive Staples and Utilities also gained.
  • Losses in Energy , Materials and Financials were the greatest weights.
  • Oil lost 3.6% (shorts continue to decrease against it), precious metals were also lower - mostly on US$ strength.
  • C$ ended down by 1.9% (asset managers continue to pull back long exposure), sitting at $0.77 support.
  • CA ETF Flows - broader market ETF's saw outflows, TSX60 ETF saw its largest outflow since the end of 2017, bond ETFs benefitting, Energy ETF saw an 8 th consec. week of outflows.
  • U.S. ETF Flows - Tech and bond ETFs the only ones to see positive flows.

WHAT'S TO COME:

  • Bank of Canada - announcing on Wednesday, no change expected.
  • Technicals - further weakness could push the TSX down to 15,200 and then 15,000 supports.
  • >2/3 of the TSX is in correction territory, 1/3 is in a bear market.
  • Economic calendar - employment report on Friday headlining; likewise, the U.S. nonfarm payrolls data is also out on Friday.
  • Earnings - earnings season slowing w/ smaller names mostly coming up, the most notable being - DSG, LNR, TOY, FNV.
  • # of CA proxy contests consistent in 2017, but it was the first time since 2014 that dissidents won more contests than management: https://www.irmagazine.com/articles/activism/29470/canadian-dissident-investors-had-successful-2017-study-says

CA ETF flow action has been driving YTD performance domestically:

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Nasdaq Advisory Services Canadian Team is part of Nasdaq's Corporate Solutions Advisory Services -- the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions about the Canadian market, please contact Prab Sagoo . This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, "Nasdaq"), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.