The Motley Fool

Royal Bank of Canada Powers the TSX Higher

Although the Royal Bank (TSX:RY) didn’t put in the biggest return in today’s Canadian market, because of its hefty weight, its shares were the biggest driver.  Shares of Canada’s biggest bank jumped 2.7% on the day to help the S&P/TSX Composite (TSX:^GSPTSE) register a 129 point or 1.0% gain.  This move higher by the Canadian market flew in the face of a decline in gold, silver, and oil prices.  A rarity.

Even more rare was that two of today’s other big contributors, Canadian Natural Resources (TSX:CNQ) and Barrick Gold (TSX:ABX) also shrugged off the decline in their respective commodities as both stocks climbed by more than 4% on the day.

Contributing the biggest drag on today’s market was Valeant Pharmaceuticals (TSX:VRX) which was down 3.6%.  Several weeks ago it was rumoured that Valeant was in pursuit of Actavis Inc.  Actavis just announced an $8.5 billion deal to acquire Warner Chilcott, indicating a deal with Valeant is unlikely to be consummated.  Those playing Valeant for its roll-up strategy were likely put off by this announcement.

Once again resource and financial stocks dictated the Canadian market’s performance.  Because of their heavy-weights in the TSX, these sectors can be lethal for investors that think they are protected with an index fund or ETF linked to the S&P/TSX Composite Index.

We have prepared a Special FREE Report that will clue you into the perils of investing in this kind of product and suggests an easy to implement alternative strategy.  It’s called “Buy These 5 Companies Instead of Following a Flawed Piece of Advice” and you can receive a copy at no charge – just by clicking here.

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

Fool contributor Iain Butler owns shares in Barrick Gold.  The Motley Fool doesn’t own shares in any of the companies mentioned.   

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.