Financial Post Says Banks Play Catch-Up2019-09-23 09:34 ET - In the News Also In the News (C-CM) Canadian Imperial Bank of Commerce
Also In the News (C-RY) Royal Bank of Canada
The Financial Post reports in its Tuesday edition that Canadian bank shares are back with a vengeance, after lagging Canada's broader stock market for much of the year. A Reuters dispatch to the Post says that TD Bank shares are on pace to climb for 13 straight days, the longest winning streak since at least 1983. CIBC has been rising for 12 days, its longest run since May, 2018. Royal Bank of Canada share are pushing toward a record high set in January, 2018. Buying stocks with strong dividend yields in the current low interest rate environment is attractive right now, said Thomas Caldwell, chairman of Caldwell Securities Ltd. "It makes more sense to own the bank than to have money in the bank. Even at these levels," he says. The biggest eight lenders have gained about $31-billion in market cap this month amid a reversal in momentum stocks. Canada's large lenders, which make up more than 20 per cent of the S&P/TSX Composite Index, have been lagging the benchmark index for the first time since 2010. The eight-company S&P/TSX Commercial Banks Index has returned 16 per cent this year, compared with a 21-per-cent return for the Canadian benchmark.
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