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S&P/TSX Composite Index: Market Falls As Strong CIBC Earnings Fails To Inspire

— Benjamin A. Smith

The S&P/TSX Composite Index (INDEXTSI:OSPTX) fell modestly on Thursday, paring most of its gains to finish negative by 0.10% to 15,508.17. Market volume lagged 3-month averages, as early enthusiasm sparked by strong CIBC earnings failed to hold.  Most of the ‘in play’ stocks were decidedly negative.

Leading the way lower was the Healthcare sector, down -1.53% on the day. No individual news stands out, but the sector followed the noticeable lag in American Healthcare stocks versus the broad market. ETF iShares U.S. Healthcare fell 0.27% while the S&P 500 rallied 0.10% and the DJIA 0.66% respectively. Telecoms, Utilities and Financials fell moderately as well.

On a more positive note, Metals & Mining and Energy both rebounded strongly from recent broad-based weakness. Both sectors finished higher by 1.27% and 1.00% respectively.

Despite today’s rally, TSX Energy stocks continue to be down around 14% over the past 12-months. Crude oil finished higher by $0.93c to $62.61/barrel. Valeura Energy Inc., Encana Corporation and Enerplus Corporation led individual names higher.

Metals & Mining has been among the strongest sector on the market, with today’s performance boosting 12-month gains to north of 20%. Pan American Silver Corp., Lundin Mining Corp., and Hudbay Minerals Inc. led individual names higher.

 

Notable Movers

Canadian Imperial Bank of Commerce (TSE:CM): Strong earnings and a 2.3% increase in quarterly dividend to $1.33 per share were enough to trigger buy orders at-open today. The latter means CIBC now pays an annual dividend of $5.32 per share at a 4.5% approximate yield. To cap things off, adjusted EPS rose ten percent in 2018.

Looks like CIBC was playing catch-up to its higher P/E cousins like Royal Bank and TD. Profit taking did occur later on in-line with the broad market afternoon decline.

Conifex Timber Inc. (TSE:CFF): No news, but stock continues to rally off bullish extension from earnings released on February 16. The market obviously like what it saw. Q4 2017 adjusted EBITDA increased to a record $17.5 million from $12.1 million in the previous quarter and $9.3 million in the same quarter of 2016. Overall, adjusted EBITDA was a record $46.0 million, compared to $33.6 million in 2016.

The stock reached fresh 52-week highs on almost 3x average daily volume.

Stantec Inc. (TSE:STN): Analysts maintained a universally poor view of the company’s latest earnings release. Gross revenue came in at $5.14 million, compared to $4.3 million in the prior-year, an increase of 19.5%. Net income registered at $97 million, compared to $130.5 million in the prior-year, a decrease of 25.7%. Stantec Inc. Price finished at the LOD’s, and average volume was 12 times higher than usual.

 

News Which Moved Markets

▼Stantec Inc.  Stantec reports fourth quarter and year-end 2017 results, dividend increase, and appointment of new director

▼Clearwater Seafoods Inc.  Clearwater announces legal action in light of DFO decision on Arctic surf clam

▲CCL Industries Inc.  CCL Industries Announces Record Fourth Quarter and 2017 Results

▼IAMGOLD Corporation  IAMGOLD Files NI 43-101 Technical Report for Previously Announced Pre-feasibility Study for the Boto Gold Project

Chart Of The Day

 

Stats

Commodities ($USD)

Contract Last Change % Change
Gold 1,332.80 0.70 0.05%
Silver 16.64 -0.038 -0.23%
Copper 3.255 0.018 0.56%
Crude Oil 62.72 1.04 1.69%
Natural Gas 2.621 -0.038 -1.43%

 

S&P/TSX Composite Index – Market Summary

Name Total Volume Total Value Issues Traded Advancers Unchanged Decliners
Toronto Stock Exchange 321,556,533 6,578,944,907 1,894 781 270 843
TSX Venture Exchange 218,188,855 115,340,464 1,161 349 364 448

 

S&P/TSX Composite Index – Most Active

Name
Symbol
Last Price
Chg
% Chg
Open
Volume
Bombardier Inc. Class B Subordinate Voting Shares BBD.B 3.92 0.07 1.82% 3.85 9,343,798
Trican Well Service Ltd. TCW 3.15 -0.31 -8.96% 3.33 7,913,140
iShares S&P/TSX 60 Index ETF XIU 23.00 -0.18 -0.78% 23.16 6,679,357
Hydro One Limited Instalment Receipts H.IR 31.35 -0.50 -1.57% 32.00 6,438,000
Cenovus Energy Inc. CVE 9.31 -0.01 -0.11% 9.41 6,360,486
Lundin Mining Corporation LUN 8.59 0.25 3.00% 8.36 6,187,976
Aurora Cannabis Inc. ACB 10.77 0.05 0.47% 10.62 4,785,182
IAMGOLD Corporation IMG 6.80 -0.62 -8.36% 7.00 4,624,668
Manulife Financial Corporation MFC 24.50 -0.28 -1.13% 24.74 4,146,190
Toronto-Dominion Bank (The) TD 73.21 -0.08 -0.11% 73.77 3,704,201

(Source: TMX Money)

Benjamin A. Smith

Benjamin A. Smith

Ben is a research analyst and capital markets professional with nearly 20 years of experience. His areas of expertise are broad-based, and include extensive knowledge of macro economics, stock/derivative trading, commodity complexes, cryptocurrencies and technical/quant analysis. He also maintains an particular affinity for U.S. politics and the macro-regulatory environment facing...
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bsmith@midasletter.com |

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