Fund Library News Wire
| Friday, February 16, 2018
By Mike Keerma
* Weekly wrap: Markets start climbing out of the hole.
Choice Properties takes over CREIT.
* Horizons launches
emerging markets pot play ETF.
* Markets start climbing out of the hole.
Stock markets staged a strong rally last week, climbing back somewhat from
steep losses suffered the week before, even as headline U.S. inflation rose
in January and Treasury yields climbed in anticipation rate hikes by the
Fed. Friday’s session saw some anxiety return as 13 Russian nationals were
accused of interfering with the U.S. elections. Toronto’s
S&P/TSX Composite Index rose 2.8% on the week while the
S&P 500 Composite Index surged 4.3% and the
Nasdaq Composite Index gained 5.3%. Commodities also gained on the week while
crude oil rallied 4.1% on the week and
gold posted a 2.5% weekly advance. Meanwhile, the CBOE Volatility Index (VIX)
continued to drift lower through the week, ending Friday at about 19, down
from a high of 29 on Monday.
As headline U.S. inflation rose at a 2.1% annual rate in January (up 0.5%
month over month), U.S. Treasury yields continued rising through the week
in anticipation central bank tightening. The yield curve flattened slightly
as 2-year notes advanced 13.2 basis points on the week, while 10-year notes
rose 4.7 points, and 30-year issues were mostly flat on the week.
Markets were rattled slightly in Friday’s session as a U.S. federal grand
jury on Friday indicted 13 Russian nationals and three Russian companies on
charges of interfering in the U.S. election by conducting information
warfare through Russian shell companies and front organizations. No
Americans were indicted, and the Dept. of Justice emphasized that there was
no allegation that any Americans were involved as anything other than
unwitting participants in carefully camouflaged Russian-based
* Choice Properties takes over CREIT.
In business news
Choice Properties Real Estate Investment Trust (TSX: CHP.UN) announced plans to take over
Canadian Real Estate Investment Trust (TSX: REF.UN) in a cash and share deal worth $3.9 billion. The merger will create
Canada’s largest real estate investment trust (REIT) with an enterprise
value of nearly $16 billion and a portfolio of 752 properties with 69
million square feet of gross leasable area. Choice properties is controlled
Loblaw Cos. Ltd. (TSX: L), a subsidiary of
George Weston Ltd. (TSX: WN), making the Weston family one of Canada’s largest commercial real estate
* Horizons launches emerging markets pot play.
Horizons ETFs Management debuted its
Horizons Emerging Marijuana Growers Index ETF (NEO: HMJR), which tracks the Emerging Marijuana Growers Index mostly North American
small-cap marijuana production companies. Stocks in the Index typically
have a market cap between $50 million and $500 million.
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