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Market wrap Feb. 24, 2017: More records for U.S. indices, TSX backs off
9/23/2017 12:27:44 PM
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By Fund Library News Wire  | Friday, February 24, 2017


 

By Mike Keerma

* More records for U.S. indices, TSX backs off.
* EdgePoint closes Series O portfolios.
* BMO lists ETFs on NEO Exchange.
* LOGiQ shuts down Macquarie infrastructure fund.


* More records for U.S. indices, TSX backs off. The major U.S. market indices went on to close at fresh record highs again last week, while Canadian stocks retreated. The U.S. blue-chip S&P 500 Composite Index closed the week with a 0.7% advance, following the lead of the roaring Dow Jones Industrial Average, which gained 1% on the week, pushing it into new high territory with a record close of 20,821.76 on Friday. The Nasdaq Composite Index logged a hairline 0.1% advance on the week, closing Friday just marginally below a record advance. The U.S. indices were led higher by gains in utilities and telecom stocks, even as lagging energy and financial stocks put a damper on the ebullience. Toronto’s benchmark S&P/TSX Composite Index, however, lost 2% on the week, retreating in the face of sliding energy and financial stocks, which are overweighted in the index. Gold, meanwhile, gained 1.8% on the week, while crude oil advanced 1.3%.

Canada’s all-items consumer price inflation rate rose at an annual 2.1% pace in January, fueled by a 20% annualized increase in gasoline prices. But energy prices weren’t soley to blame for the growing rate of inflation, as the annual core rate, which excludes food and energy, rose at an annual 2.2% clip.

In business news, Canada’s largest bank, Royal Bank of Canada (TSX: RY) reported first-quarter (ended Jan. 31) net income of $3.027 billion ($1.97 per share diluted), up 24% from $2.447 billion ($1.58 per share) in the same period a year ago. Adjusted for the sale of Royal’s U.S. Moneris operation, net income came in at $2.815 billion ($1.83 per share diluted), which was up 15% from the $2.447 billion ($1.58 per share diluted) from the year-ago period. In a statement, Royal Bank said “the results reflect strong earnings in Personal & Commercial Banking, Wealth Management, Capital Markets and Investor & Treasury Services.” Royal Bank also increased its quarterly dividend by $0.04 per share, to $0.87 per share.

Likewise, Canadian Imperial Bank of Commerce (TSX: CM) reported a good first quarter, with net income of $1.407 billion ($3.50 per share diluted), compared with $982 million ($2.43 per share diluted) for the same quarter a year ago. Adjusted net income was $1.166 billion ($2.89 per share diluted) compared with $1.029 billion ($2.55 per share diluted) for the same period a year ago. CIBC also announced a $0.03 per share hike in its quarterly dividend, to $1.27.

FUND NEWS

* EdgePoint closes Series O portfolios. EdgePoint Wealth Management announced plans to shut down all its Series O Portfolios on or about May 1, 2017. In a relese EdgePoint said the decision was based on the narrowing of the management expense ratio difference between Series O and its Series F and F(N) portfolios. The Series O units will be converted to the same Portfolio’s Series F or F(N) units.

* BMO lists ETFs on NEO Exchange. BMO Asset Management Inc. announced three new U.S. Treasury bond ETFs will begin trading on the Aequitas NEO Exchange on Tuesday, Feb. 28.

BMO Long-Term US Treasury Bond Index ETF (NEO: ZTL) will track the Bloomberg Barclays US Treasury Long Treasury Bond Index, with exposure to U.S. Treasury indexes with greater than 10 years to maturity.

BMO Mid-Term US Treasury Bond Index ETF (NEO: ZTM) tracks the Bloomberg Barclays US Treasury 5-10 Year Bond Index for exposure to U.S. Treasury indexes with 5 to 10 years to maturity.

BMO Short-Term US Treasury Bond Index ETF (NEO: ZTS) tracks the Bloomberg Barclays US Treasury 1-5 Year Bond Index, for exposure to U.S. Treasury indexes with 1 to 5 years to maturity.

* LOGiQ shuts down Macquarie infrastructure fund. LOGiQ Asset Management Ltd. (formerly Aston Hill) announced that it is terminating the Macquarie Emerging Markets Infrastructure Income Fund (TSX: MQA.UN), effective March 22. The closed-end fund has a tiny market cap of only $9.7 million, and has seen its assets dwindle from $60 million at the end of June 2014 to $19 million at the end of June 2016. LOGiQ said in a release that the termination “is in the best interests of the unitholders.” It added that it will use “commercially reasonable efforts to sell all non-cash assets of the fund and discharge the Fund’s outstanding liabilities.” Remaining assets will be distributed pro rata to unitholders.

Check Fund Library’s Market Activity page regularly for active updates on key market indexes and commodities.

@FundLibrary – Follow Fund Library on Twitter for daily information and updates.

Disclaimer

© 2017 by Fund Library. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited.

The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.

 
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