Guardian manager doesn't expect oil slump to last for long

Pipelines provide more stable exposure to the energy sector, Michele Robitaille says.

Sonita Horvitch 21 June, 2017 | 5:00PM

Michele Robitaille, managing director and equity-income specialist at Guardian Capital L.P., says concerns surrounding two key sectors of the Canadian equity market are putting a brake on its performance. "Looking more closely at the issues, these concerns could well be overblown," she says.

The Canadian equity market has "stagnated" in the first five months of 2017, says Robitaille. The S&P/TSX Composite Index had a total return of 1.50% and a price return of 0.41% over this period. Dividend stocks, as measured by the S&P/TSX Composite High Dividend Index, were modestly weaker. This index produced a total return of 1.35% for the first five months of 2017 and a price return of minus 0.42%.

Overhanging the Canadian equity market, says Robitaille, is the weakness in the price of oil, which is affecting the heavily weighted energy sector. Also, the overheating in the Canadian housing market and the possibility of a correction is affecting investor sentiment regarding the Canadian banks, which make up another large portion of the S&P/TSX Composite Index.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Boardwalk Real Estate Investment Trust28.97 CAD-0.62
Canadian Imperial Bank of Commerce91.62 CAD1.68
Cenovus Energy Inc5.99 CAD1.70
Enbridge Inc40.15 CAD-0.12
Encana Corp13.35 CAD5.62
H&R Real Estate Investment Trust9.58 CAD0.10
Home Capital Group Inc19.63 CAD1.66
Manulife Financial Corp18.34 CAD2.29
Riocan Real Estate Investment Trust14.89 CAD0.88
TC Energy Corp56.83 CAD1.59

About Author

Sonita Horvitch

Sonita Horvitch  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies