Spring Fever Grips the TSX

Blue Jays fans are wishing their team could start a week just like the TSX has – with two wins in a row.

| More on:
The Motley Fool

After the slaughter of a few weeks ago, the S&P/TSX Composite (TSX:^OSPTX) has done a pretty good impression of spring by greening up nicely.  Since bottoming out on April 17th at 11,947.29 the Canadian market has rallied for about 500 points – a gain of more than 4%.  This includes today’s near 144 point move higher.

Leading the charge today was Suncor Energy (TSX:SU) and its 6% move.  Suncor knocked the cover off the ball with its first quarter earnings, upped its dividend and reloaded on a $2 billion buyback.  When this kind of trifecta hits a stock trading at a discounted valuation, good things happen.

For the second day in a row Bank of Nova Scotia (TSX:BNS) joined the ranks of top contributors as its shares jumped 1.1%.  Enbridge (TSX:ENB) and Goldcorp (TSX:G) joined BNS in the day’s top contributors club.  Shares in each climbed 1.6% and 2.2% respectively.

Creating the biggest drag on today’s market was Suncor’s peer Canadian Natural Resources (TSX:CNQ).  CNQ shares fell 1.4%.  While Suncor was driven higher because of a strong quarter, CNQ was left to deal with the decline in oil and natural gas prices that occurred today.

Because of their heavy-weightings in the S&P/TSX Composite Index, resource and financial stocks once again dominated today’s market.  The heavy allocation that our market has to these sectors means investors that rely on Canadian Index funds or ETFs severely lack diversification in their portfolio.  We have created a special FREE 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 Stocks 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 is short $32 July 2013 put options on Goldcorp.  The Motley Fool does not own shares in any of the companies mentioned.     

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

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »