Small Stocks, Big Moves in the TSX

Big moves from some small stocks weren’t enough to carry the TSX into positive territory on Thursday.

| More on:
The Motley Fool

The S&P/TSX Composite Index (TSX:^OSPTX) finished Thursday down a mere 41 points or 0.33%, however, underlying this apparent calm were some very significant moves within the Index.

Canadian Tire (TSX:CTC.A) was the biggest positive contributor on the day.  The stock soared 11.2% after the company announced it will undergo a Loblaw-esque real estate spin.

Two other stocks that have been beaten down of late were up big as well, although because of their small weights, they didn’t contribute much.

Much maligned Extendicare (TSX:EXE) announced that it will be splitting its Canadian and U.S. divisions.  The market liked this idea and sent the shares 16% higher.

Atlantic Power (TSX:ATP) is another stock that the market has beaten down.  ATP was up 14.2% today after announcing better than expected quarterly results.

Holding the index down on the day was a collection of bank stocks.  Royal Bank (TSX:RY) was the biggest drag, falling 0.80%, but TD Bank (TSX:TD) and Bank of Nova Scotia (TSX:BNS) were close behind with respective declines of 0.7% and 0.6%.

One has to think the comments made at yesterday’s Ira Sohn conference in New York by hedge fund manager Steve Eisman had something to do with today’s decline for the banks.

Eisman is very bearish on the Canadian housing market, and banks are a natural (although perhaps not overly reasonable) target for those that agree with his thesis.

In general, North American markets went into a bit of an afternoon swoon after Fed Bank of Philadelphia President Charles Plosser mentioned he’d like to see the central bank start reducing the rate at which it buys bonds as soon as the next meeting in June.  Not the kind of thing equities like to here.  We’ll be able to gauge by tomorrow’s market action if these remarks have been schluffed off, or if they are actually being taken seriously.

If you own, or are thinking of purchasing a Canadian index fund, you need to click here to receive our special FREE report “Buy These 5 Companies Instead of Following a Flawed Piece of Advice”.  Your portfolio will thank you for reading this report!

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

Fool contributor Iain Butler does not own any of the companies mentioned in this report at this time.  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

A worker gives a business presentation.
Stocks for Beginners

2 Reasons to Buy Onex Stock Like There’s No Tomorrow

Onex (TSX:ONEX) stock has been a strong performer over the years, both in terms of growth and dividends that investors…

Read more »

Canadian Dollars
Stocks for Beginners

The Best Stocks to Invest $5,000 in Right Now

Are you looking to put some cash into the stock market? Here are three picks to put on your watch…

Read more »

calculate and analyze stock
Dividend Stocks

Got $1,000? 3 Dividend Stocks to Buy and Hold Forever

Dividend stocks like Restaurant Brands International (TSX:QSR) can pay substantial amounts of passive income.

Read more »

financial freedom sign
Bank Stocks

This Ridiculously Cheap Warren Buffett Stock Could Help Make You Richer

American Express stock is part of Warren Buffett's equity portfolio, and the stock trades at a steep discount in 2024.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Monday, February 26

After rising for two weeks in a row, the main TSX index is now at its highest level in more…

Read more »

stock analysis
Investing

Buy the Dip: 2 Stocks to Buy Today and Hold for the Next 5 Years

These Canadian stocks are trading at discounted valuations, providing an opportunity for buying the dip.

Read more »

bulb idea thinking
Investing

Safety in Size? 2 of the Bluest Blue-Chip Stocks I’d Buy Now

TC Energy (TSX:TRP) and another cash cow have huge dividend yields for safe investors.

Read more »

A cannabis plant grows.
Cannabis Stocks

Can Aurora Cannabis Stock Recover in 2024?

Aurora Cannabis stock is down 99% from all-time highs but remains a high-risk bet, despite its cheap valuation.

Read more »