Markets

TSX Quarterly Rebalance this Week

There will be a frantic end to the week :

  • TSX Composite to undergo its quarterly rebalance on Friday March 16 th - expect heightened volumes, blocks and volatility (additions/deletions at foot of email).
  • Quadruple Witching also on the cards for Friday March 16 th - further elevating volumes.

WHAT HAPPENED:

  • The TSX gained 1.3% but remained relatively range-bound level, S&P500 +3.5%. Volumes were lighter despite the broad-based advance.
  • All sectors advanced save for Utilities - ETF inflows offsetting some of the longer term asset outflows here .
  • Consumer stocks outperformed, both rising near 4% each. Meanwhile, +1% gains in both Energy and Financials underpinned the broader advances.
  • Oil rose 1.3% while precious metals were mostly higher (positioning against Gold remains firmly short, has been since Jan2016).
  • C$ rose 0.6% vs US$ (asset manager longs continue to decrease rather abruptly against the C$).
  • CA ETF Flows - U.S. investors pulled assets out of CA for 3 rd consec. week, Energy saw its first inflow in 9 weeks, Utilities saw their largest weekly inflow since Oct2016 .
  • U.S. ETF Flows - Tech continues to see substantial inflows, most other sectors also saw inflows, S&P500 ETF saw its 3 rd consec. weekly outflow, global-focused ETF's benefitted .

WHAT'S TO COME:

  • Quadruple Witching on Friday March 16 th - elevated volume and block activity to be expected.
  • TSX Rebalance - Friday March 16 th , changes effective March 19 th .
  • Technicals - TSX continuing to see technical resistance at 15,600.
  • Earnings - winding down, the most notable names include QBR, EMP.A, VII, TSGI, WSP and TRQ.
  • The CA economic calendar is light this week, w/ manufacturing data headlining. The U.S. calendar will be a bit more robust - CPI, retail sales, consumer sentiment and import/export data.

TSX COMPOSITE ADDITIONS:

  • Aurora Cannabis (Health)
  • Sienna Senior Living (Health)

TSX COMPOSITE DELETIONS:

  • Crew Energy (Energy)
  • Klondex Mines (Materials)

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.