S&P/TSX Composite index: Bank Beating on BOJ; Bank of Montreal, Toronto Dominion Bank, Royal Bank of Canada, Bank of Nova Scotia, Canadian Imperial Bank of Commerce

The S&P/TSX Composite index (INDEXTSI:OSPTX) is soaring on Bank of Japan’s negative interest rate, but Canada’s top bank stocks are paying the price, including Royal Bank of Canada (TSE:RY) (NYSE:RY), Bank of Montreal (TSE:BMO) (NYSE:BMO),
Toronto-Dominion Bank(TSE:TD)(NYSE:TD), Bank of Nova Scotia (TSE:BNS) (NYSE:BNS) and Canadian Imperial Bank of Commerce (TSE:CM) (NYSE:CM).

All five of the top Canadian banks are trading to the downside as the Bank of Japan’s surprise move puts the entire global financial services sector under a cloud. Is this it for the ability of Quantitative Easing and Zero (or rather now, ‘sub-zero’) Interest Rate Policy to effectively stimulate world economies into at least the appearance of stable growth?

Certainly the action on the bank stocks would suggest that the world’s largest capital pools, who are predominantly represented among the shareholders of the world’s top financial institutions, would suggest that such is the case.

All five of the Canadian institutions are among the early day’s top traders in dollar value terms, with the Toronto-Dominon leading the pack with a 0.70 percent decrease on volume of 607,000 shares to $52.38 as of 10:30 am ET on Friday, while Bank Royal Bank of Canada follows closely with a 0.63 percent decrease in share price on volume of 608,000 shares. Bank of Nova Scotia has suffered a 0.53 percent loss so far, now trading at $56.10 on 506,000 shares traded, and Canadian Imperial Bank of Commerce is off 0.60 percent at this hour on volume of 236,000 shares to $89.68.

Emera Incorporated Instalment Receipts (TSE:ERA) are up 1.63 percent as the highest dollar volume trader as well as touching a 52-week high on the Toronto senior exchange so far, having gained $0.60 to trade at $37.30 on volume of over 2 million shares.

Among the best performing companies on the TSX so far today is Premium Brands Holdings Corp (TSE:PBH), now trading at a 52-week high of $41.78, up $0.85, or 2.08 percent on volume of 73,316 shares traded.

Algonquin Power & Utilities Corp (TSE:AQN) is also trading at the top end of its 52-week range, having traded 470,000 shares so far for a 1 cent per share increase to $11.45 per share. This despite a downgrade in ratings from National Bank Financial.

The biggest losers on the TSX so far today include Senvest Capital inc. (TSE:SEC), down $3.48 or 2.61 percent to $130 per share, and Fortress Paper Ltd. (TSE:FTP), whose share price is down 7.41 percent to $4.25 per share on volume of 5,800 shares traded thus far.

Husky Energy is down 1.76 percent at this hour at $13.92 per share on volume of 335,358.

James West

Editor and Publisher

James West founded Midas Letter in 2008 and has since been covering the best of Canadian and US small cap companies. He covers global economics, monetary policy, geopolitical evolution, political corruption, commodities, cannabis and cryptocurrencies. As an active market participant, James is not a journalist and is invariably discussing markets...
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