Investors rotating out of safe names, says analyst

Last week, energy stocks outperformed with a +5% gain on the back of the OPEC agreement to curtail production, says Prab Sagoo, associate director at Nasdaq Advisory Services. Meanwhile, crude ended +8% on the week.

Over the same period, says Sagoo, materials and staples sold off as investors rotated out of some safe and higher-yielding names.

More highlights

• The TSX ended the week close to flat, in-line with the S&P 500 though outperformed EU and Asian markets notably.
• The index also finished last week at the top end of its recent range, continuing to encounter technical resistance at the 14,800 level.
• At the end of Q3, the benchmark index closed with gains of 4.7% and is +13% year-to-date. Small caps underperformed over the quarter in contrast to their sharp outperformance earlier this year.
• Domestic data is a little lighter, and the highlight will be labour force data on Friday. U.S. nonfarm payrolls data will also headline in the U.S.

Staff

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