|Bid||24.78 x N/A|
|Ask||24.80 x N/A|
|Day's Range||24.76 - 24.85|
|52 Week Range||24.76 - 24.85|
|Beta (3Y Monthly)||1.17|
|PE Ratio (TTM)||2.17|
|Forward Dividend & Yield||2.10 (8.46%)|
|1y Target Est||N/A|
(Bloomberg) -- Buying low and selling high? Maybe not in Canada right now.As 2019 draws to a close, many stock investors have at least one reason to sell low: reduce their tax bill. While that may sound like an interesting opportunity, it could also mean wild gyrations for two of the nation’s riskiest industries.Both energy and pot shares are standing out among the biggest losers in Canada’s stock market this year. Oil and gas producers have been flailing as foreign companies pull investment from oil-sands projects amid a slump in Canadian crude versus the U.S. benchmark due to pipeline bottlenecks. Meantime, several marijuana companies have yet to turn a profit.About 70% of the energy stocks in the S&P/TSX Composite Index have hit one-year lows this year, and fewer than half of its companies have posted double-digit gains, according to data compiled by Bloomberg. The iShares S&P/TSX Capped Energy Index ETF is almost flat for 2019, compared with an 18% surge in the benchmark gauge of Canadian equities.Read more: Wall Street’s Most-Loved Stocks Just Can’t Shake Investor Fears“It seems reasonable to assume that there could be some tax-loss selling into year-end, particularly since the S&P/TSX Composite Index is up,” analysts led by Menno Hulshof at TD Securities Inc. said. Energy service providers and oil and gas mid-and-smallcaps “will be most prone to further weakness into year-end.”Pot stocks have also been feeling the pinch as many companies continue to bleed cash and vaping lung injury concerns persist. The Horizons Marijuana Life Sciences ETF has plunged more than 50% since its March peak, and most weed shares have never regained the high they hit last year.“Such underperformance begs the question: what happens to the sector when tax-loss selling begins?” said Graeme Kreindler, analyst at Eight Capital. While investor sentiment suggests tax-selling loss could occur, sending stocks even lower, he said it’s difficult to confirm whether that has already happened or it will continue for the rest of the year.Read more: One Year In, Legal Canadian Pot Fails to Match the HypeTo make things worse, analysts aren’t expecting stellar results. For MKM Partners’s Bill Kirk, this week “is going to be book-ended with cannabis disappointment” as Canopy Growth Corp. and Aurora Cannabis Inc. are slated to report on Thursday. Strategists at Canadian Imperial Bank of Commerce and Cantor Fitzgerald are also adding to the growing chorus that it’ll be a weak earnings season.Now, there may be some light at the end of the tunnel as the tax selling could also bode well for some investors. Further weakness in energy stocks “could potentially create a buying opportunity in late December, early January,” Hulshof said.(Updates prices.)\--With assistance from Kristine Owram.To contact the reporters on this story: Divya Balji in Toronto at email@example.com;Michael Bellusci in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Madeleine Lim at email@example.com, ;Jeremy Herron at firstname.lastname@example.org, Rita Nazareth, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Here are the most crucial money handling lessons your parents didn't teach you, from getting setting a budget to investing in stocks like Canadian Imperial Bank of Commerce.
Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) and one other major Canadian financial institution are a good fit for a dividend portfolio.
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TORONTO — CIBC has agreed to sell a large portion of its investment in CIBC FirstCaribbean to GNB Financial Group Ltd. for US$797 million.Upon closing of the transaction in 2020, GNB will own 66.7 per cent of FirstCaribbean's equity, while CIBC will retain 24.9 per cent.CIBC will receive about US$200 million in cash and provide secured financing for the rest.GNB Financial is wholly owned by Starmites Corp., the financial holding company of the Gilinski Group, which has about US$15 billion in combined assets.CIBC FirstCaribbean operates in 16 countries in the region and offers a range of financial services including corporate, retail and business banking as well as wealth management.CIBC expects to record an after-tax loss on the transaction of about C$135 million in the fourth quarter ended Oct. 31. Upon closing, CIBC expects to realize foreign currency translation gains estimated at C$280 million. This report by The Canadian Press was first published Nov. 8, 2019.Companies in this story: (TSX:CM)The Canadian Press
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Canada’s trade deficit narrowed by less-than-expected in September as the nation’s exports continued to decline, adding to concerns that trade tensions and uncertainty around global growth are weighing on business.The nation’s merchandise trade gap hit C$978 million ($744 million) in September, from a revised C$1.2 billion deficit in August, Statistics Canada said Tuesday in Ottawa. The result missed economist expectations for a smaller deficit of C$650 million.The weakness in the report is consistent with the view from the Bank of Canada that ongoing trade conflicts between the U.S. and China is hitting business investment in Canada and weighing on exports. The central bank last week forecast an outright decline in exports and investment in the second half of 2019.Both exports and imports fell in September. Merchandise shipments abroad fell 1.3%, with declines across the board led by energy products, particularly crude. It marked the third drop in the past four months, leaving exports down 5.7% from record levels hit in May. In volume terms, which strip out the effects of price changes, exports fell 2.1% in September.Even with the lower exports, Canada’s trade deficit narrowed slightly because imports posted a sharper decline in September, dropping 1.7% on fewer metal and non-metallic mineral product shipments, particularly gold. This follows a large gain of 9.2% for the category in August. In volume terms, imports dropped 1.6% in September. “Overall, while this looks like a soft report, the declines in two-way trade were anticipated and not any worse than we had feared,” Andrew Grantham, economist in Toronto at Canadian Imperial Bank of Commerce, wrote in a note. “As such, this should have limited impact on our tracking forecast for GDP and for markets today.”The Canadian dollar was little changed after the release, up 0.1% to C$1.3133 against its U.S. counterpart at 8:50 a.m. Toronto time. Yields on government 2-year bonds rose 3 basis points to 1.63%.On a quarterly basis, total exports dropped 2.3% in the July to September period, declining 0.5% in volume terms. That compares with robust increases in the second quarter of 4.8% in nominal exports and 3.5% in volumes.Imports rose 1.6% on a volume basis in the third quarter, driven mostly by motor vehicles and parts, the statistics agency said.U.S. SurplusCanada’s trade surplus with the U.S., its main trading partner, was largely unchanged in September as both exports and imports fell. The surplus decreased slightly to C$4.8 billion, from C$4.9 billion in August.Exports of canola plunged 49% in September, reaching the lowest level in more than 6 years, the agency said. Exports of the crop so far this year are down 22% compared last year, mainly due to declines in shipments to China.At the same time, Canada bought more Chinese goods, contributing to a larger deficit with the Asian country.August’s trade balance was revised to a deficit of C$1.2 billion, after an initially reported C$955 million, the statistics agency said.(Updates with analyst forecast in sixth paragraph.)\--With assistance from Erik Hertzberg.To contact the reporter on this story: Shelly Hagan in Ottawa at email@example.comTo contact the editors responsible for this story: Theophilos Argitis at firstname.lastname@example.org, Chris FournierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.