Manulife, Great-West Power the S&P/TSX Composite Higher

A tidy gain put in by the Canadian market to start the week.

| More on:
The Motley Fool

The Canadian market demonstrated some “life” on Monday as two of this country’s biggest life insurers were the top two contributors to the day’s positive move.  Manulife Financial (TSX:MFC) and Great-West Life (TSX:GWO) climbed 3.4% and 2.5% respectively, helping to lift the S&P/TSX Composite (^GSPTSE) 73.95 points or 0.61%.

As we’ve indicated, bond yields have a dramatic impact on life insurers.  And even though yields were down today, their surge on Friday, which was the most since August 2011, as well as speculation out of Goldman Sachs that the 10-year U.S. Treasury could hit 4% by 2016 probably had an impact on today’s moves by MFC and GWO.

On the back of the rise in rates that has occurred, both stocks closed very close to their 52-week high.

Suncor Energy (TSX:SU) also had a favourable impact on today’s market as oil prices have jumped of late due to the political turmoil in Egypt.  Suncor was up 1.5% today, even though WTI oil was down slightly.

Today’s biggest detractor for the Canadian market was Goldcorp (TSX:G), as the stock declined by 2.2%, even though the price of gold was up.  Not only was gold up, but the company announced that a forest fire that had been raging in the vicinity of its Eleonore project in the James Bay region of Quebec, seemingly threatening the project’s development, was extinguished.  The conundrum that is gold stocks continues.

Foolish Takeaway

Once again, resource and financial stocks 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, opening them to undue risks.  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!

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

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

Fool contributor Iain Butler is short $32 July 2013 puts 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

Rocket lift off through the clouds
Tech Stocks

1 AI Stock Up 11% to Own in a TFSA for Long-Term Growth

Never mind chasing flashy AI start-ups with soaring valuations. Check out this profitable Canadian tech powerhouse that has stood the…

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

Ivanhoe Mines: Buy, Sell, or Hold in July 2025?

Here's what to consider before trading Ivanhoe Mines stock this month. Watch out for July 30th!

Read more »

ETF stands for Exchange Traded Fund
Investing

Earn a 4.3% Yield From Berkshire Hathaway Stock With This Monthly Income ETF

This ETF uses options and leverage to generate income from Berkshire Hathaway

Read more »

construction workers talk on the job site
Energy Stocks

This Canadian Stock Could Double Even During Market Volatility

While growth stocks ride volatility, this dependable, dividend-paying stock could double your money over time.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

What Are Some Good Energy Stocks to Buy Now?

Cenovus Energy (TSX:CVE) and another great oil bet that could pay huge dividends.

Read more »

Forklift in a warehouse
Dividend Stocks

It’s Possible! Build a $250,000 TFSA Using Just 2 Dividend Stocks

Want a $250,000 TFSA that pays out monthly? These two solid REITs pay monthly distributions.

Read more »

Income and growth financial chart
Dividend Stocks

This Canadian Retail Stock Yields 3.8% and Keeps Expanding

A growing dividend, rising share price, and big strategic moves make this top Canadian retail stock worth owning for the…

Read more »

Senior uses a laptop computer
Retirement

How Much Can You Earn Before Losing Your Guaranteed Income Supplement?

The CRA offers the Guaranteed Income Supplement to low-income Canadians above 65. At what annual income will you lose your…

Read more »