Financial stocks up as Home Capital rebounds
A 16 per cent gain for Home Capital stocks helped the main TSX index close higher Monday.
The lender’s rise followed its announcement that it has drawn $1.4 billion of its credit line secured by Canada’s major banks as its deposit levels dropped to $192 million; that it has suspended its dividend to help maintain liquidity; and that three leading Canadian businesspeople – Claude Lamoureux, Paul Haggis and Sharon Sallows – have agreed to join the Company’s Board of Directors immediately.
Lamoureau is a former Ontario Teachers Pension Plan CEO; Haggis is a former CEO of Ontario Municipal Employees Retirement System; and Sallows has a background in lending in real estate and other sectors.
The 0.7 per cent rise for the financials group of the TSX was one of seven groups to close higher, led by a 1.7 per cent rise for energy as oil gained on expectation of a renewed OPEC output cut.
Wall Street closed flat. Europe was mostly lower while Asian indexes were mostly higher.
The S&P/TSX closed up 70.04 (0.45 per cent)
The Dow Jones closed up 5.34 (0.03 per cent)
Oil is trending higher (Brent $49.42, WTI $46.49 at 4.45pm)
Gold is trending lower (1226.60 at 4.45pm)
The loonie is valued at U$0.7298
Infrastructure bank will be based in Toronto
Canada’s new infrastructure financing agency will be based in Toronto the federal government said Monday.
Despite calls for the agency to be based in Montreal, the government wants it close to the financial district for easier access to investors and the key talent that is needed to make it work.
The process of finding that talent, including senior leadership and governance positions, will now begin.
Housing starts nudge higher
There was an uptick in the trend in housing starts in April, CMHC has reported. The agency says the trend increased to 213,768 compared to 210,702 in March.
“New housing construction increased in Canada, with seasonally adjusted data exceeding 200,000 units for five months in a row”, said Bob Dugan, CMHC’s Chief Economist. “The increase in the trend was mainly due to apartment construction in British Columbia and Québec, which was partly offset by a decline in Ontario’s multiple starts.”
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