The S&P/TSX Composite climbed 1340 points or 6.4 per cent over the past three months as strength in the oil and gas sector overcame weakness in domestic technology stocks. The big trend might be a potential recovery in major bank stocks.
The first chart below details the biggest contributors and detractors from three-month benchmark returns in point terms. Shopify Inc. had the biggest single stock impact on returns, detracting 271 points in the past three months. The next four biggest detractors – Magna International, Alimentation Couche-Tard, BCE and Open Text – had no more than 25 points of impact on returns.
Energy stocks dominate the list of top five contributors to S&P/TSX Composite performance. Canadian Natural Resources added 192 points, Suncor 98 points, and Enbridge 87 points.
Royal Bank is the second biggest point supporter for the index with 109 positive points thanks to an 8.6 per cent return. There are no other banks in the top five but CIBC was the 11th biggest contributor with 49 points and Bank of Nova Scotia added 42 more. Banks stocks have lagged for a long time so the bounceback over the past 90 days is welcome.
In terms of outright percentage returns, precious metals and copper producers dominate the top of the list. Hudbay Minerals had the best three months, rising an impressive 66 per cent. Fortuna Silver Mines Inc. is next after climbing 65 per cent, Bombardier is third with a 62 per cent jump. Capstone Copper and Iamgold round out the top five with returns of 60 per cent and 57 per cent respectively.
SSR Mining, stuck on the list of worst returns for index constituents, lost 42 per cent over the past three months. Shopify Inc was the second biggest decliner after losing 27 per cent. Open Text added to the theme of technology weakness after dropping 24 per cent. Magna International and ATS Corp both shed 17 per cent.
Scott Barlow