TSX Composite Index – Market Breadth Outlook For Aug 25 2017

Aug 25, 2017 | TSX Composite Index - Canadian Stock Market Outlook

TSX Composite Index Market Breadth Outlook

On Thu Aug 24 2017 volume finally picked up a bit and the TSX Composite Index managed a second positive close.

Much of the downside on Thursday was caused by Canadian Imperial Bank of Commerce Stock which fell back $2.03 for a 1.89% decline on revenue numbers that looks strong and included a dividend increase bringing the quarterly dividend to $1.30. Investors though were not impressed and sold the stock lower. A dividend of $1.30 means the company is now paying out $5.20 a year in dividend. If an investor bought shares for $105.57 today at the close this is a 4.92% dividend. As well over a period of 3 years the bank will return $15.60 in dividends which effectively reduces the cost of stock ownership from $10557 to $89.97 without taking into account any further dividend increases. I think perhaps the selling was a bit short-sighted.

Meanwhile Fairfax Financial Stock (FFH) rose 5% to $636.62 after announcing their decision to sell First Capital Insurance for $1.6 billion to Mitsui Sumitomo Insurance Company,who they plan to team with in search of other investing opportunities. Fairfax was trading for $550 late June and is now up 15.6% since then. It is still trading well below it’s all-time high of $780 set in February 2016. From that high the stock is still down 18% despite today’s increase of $30.32.

Here is the Market Breadth Indicator outlook for Fri Aug 25 2017 after the close of trading on Thu Aug 24 2017.

The TSX Composite Index Market Breadth Outlook for Tomorrow is for FullyInformed Members.