Suncor, Financials Prop Up the Canadian Market

Canada was back in the green thanks to a collection of blue chips.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Although they tried, the gold miners couldn’t drive the Canadian market to another down day on Tuesday.  The S&P/TSX Composite gained about 115 points to finish the day up 0.96%.

Even though the spot price of gold made a slight recovery, gaining 1.6%, the miners once again faced significant selling pressure.  Barrick Gold (TSX:ABX,NYSE:ABX) was the worst of the large caps, checking in with another decline greater than 5%.

Counteracting the sector that seemingly everybody loves to hate was a collection of blue chip financial names.  All of the banks had a good day with the Bank of Nova Scotia (TSX:BNS,NYSE:BNS) and TD Bank (TSX:TD,NYSE:TD) making significant contributions to the index with their returns of 1.4% and 1.3% respectively.

Sunlife (TSX:SLF,NYSE:SLF) and Brookfield Asset Management (TSX:BAM.A,NYSE:BAM), with respective returns of 3.1% and 2.3%, also chipped in to fight the negative strain brought on by the golds.

Aside from gold stocks, resources had a decent day as well.  First Quantum (TSX:FM) had a nice bounce, up over 9%, and heavy weight Suncor Energy (TSX:SU,NYSE:SU) was in fact the top contributor to the Canadian market, up a bit more than 3%.

Even Blackberry (TSX:BB,NASDAQ:BBRY) joined in on the fun.  The stock turned in a gain of 1.4% thanks to a favourable analyst report.

Foolish Takeaway

Without participation from the gold sector, it will be a challenge for the rest of the Canadian market to really make any headway.  However, the bounce that occurred today was a welcome respite from the negative spiral that we had seemingly entered.

The S&P/TSX Composite Index is loaded with resource and financial stocks.  Because of this, investors that rely on Canadian Index funds or ETFs severely lack diversification in their portfolio, opening them to undue risks.  We have created a special report that outlines an easy to implement strategy and 5 Canadian stocks that reduce the risks involved with passively investing in the Canadian market.  Click here now to receive “Buy These 5 Companies Instead of Following a Flawed Piece of Advice” – FREE!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler owns shares of Barrick Gold.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Supermarket aisle with empty green shopping cart
Investing

$183 for Toilet Paper and Cups: Why We Love Costco Stock

"I literally went up there to get two things."

Read more »

A worker gives a business presentation.
Investing

TFSA Investors: 2 Top Stocks to Buy Before They Rally Any Further

Although plenty of top Canadian stocks have been rallying recently, these two still offer great value and are perfect for…

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

3 TSX Stocks With High Dividend Yields

Are you looking for a great opportunity to bolster your portfolio? Here are three TSX stocks with high dividend yields.

Read more »

financial freedom sign
Stocks for Beginners

1st-Time Investors: 2 Cheap Canadian ETFs to Buy for Financial Freedom 

Investing for the first time but don’t know where to start? Here are two cheap Canadian ETFs that can grow…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Got $4,000? 4 Simple TSX Stocks to Buy Right Now

The macroeconomic environment is tense but investing can be simple. Here are four stocks to buy now and book your…

Read more »

Oil pumps against sunset
Energy Stocks

2 Top Canadian Energy Stocks to Buy Offering Dividend Yields Above 6%

These two top Canadian energy stocks are excellent long-term investments and offer unbelievable dividend yields if you buy them today.

Read more »

Target. Stand out from the crowd
Investing

4 TSX Stocks I Own and Will Buy More of if They Fall

These are my four top choices of TSX stocks that may dip in the future, but will pay me back…

Read more »

Dollar symbol and Canadian flag on keyboard
Stocks for Beginners

The 2 Best Canadian Stocks for Beginners Right Now

Stock market beginners in Canada could kickstart their investing journey by buying these two stocks right now.

Read more »