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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Boardwalk Real Estate Investment Trust21.70 CAD3.98
Canadian Imperial Bank of Commerce77.67 CAD-4.91
Cenovus Energy Inc2.35 CAD-11.65
Enbridge Inc38.87 CAD-7.32
Encana Corp3.75 CAD-6.25
H&R Real Estate Investment Trust8.43 CAD2.93
Home Capital Group Inc16.13 CAD-10.24
Manulife Financial Corp15.76 CAD-6.97
Riocan Real Estate Investment Trust16.06 CAD-0.19
TC Energy Corp58.21 CAD-4.59

About Author

Sonita Horvitch

Sonita Horvitch