"Investors are finally warming up to Canadian energy stocks" Investors are finally warming up to Canadian energy stocks.
There's no shortage of superlatives to describe market optimism as the price of oil climbed and corporate profitability concerns eased. The S & P/TSX Energy Index is on pace for its biggest monthly gain since January. It also has the No 1 spot among sectors on the S & P/TSX Composite Index on Friday. And the iShares S & P/TSX Capped Energy ETF saw its largest inflows since June last month.
Now, investors are flooding back in as third-quarter results came in better than expected, and companies bought back shares, raised dividends and divested assets to shore up cash. 'They're being very good to the shareholder, John Kinsey, portfolio manager at Caldwell Securities Ltd, said by phone.
Earnings results 'highlighted strong free cash-flow generation and active debt repayment, Eight Capital analyst Phil Skolnick said in a November 12 report.
Suncor Energy Inc approved a boost to its share buyback program this week, pleasing analysts as the company checks the box on providing shareholder returns. Crescent Point Energy Corp's latest gas infrastructure asset sale for C$500mn ($378mn) topped analyst expectations.
With oil and gas stocks making up more than 16% of the Canadian benchmark index, that's given the TSX a boost this month — up every single trading session in November, hitting all-time highs for most of this week. The key stock gauge crossed the 17,000 mark on Friday.
Foreigners bought C$1.08bn worth of stocks in September, according to Statistics Canada.
source: Bloomberg