Find Out Which One Sector is Holding up the Canadian Stock Market

The Toronto Stock Exchange finished higher in the third quarter with a boost from one hot sector.

Photo by M. B. M. on Unsplash

An unexceptional quarter for Canada’s major stock equity market, the Toronto Stock Exchange (TSX), belies the big gains seen in cannabis-related stocks.

The TSX Composite Index came in 54th of 93 main Bloomberg-tracked stock indices. The index was home to some significant gains in the Healthcare sector. Those gains were offset by losses on shares of mining and energy companies.

Marijuana companies are soaring as the country prepares for recreational marijuana legalization. And they are keeping the TSX from falling too far.

The TSX health care sub-index beat all others in the third quarter, with a return of 31.17 percent. The health care sector got a boost this quarter from hot marijuana stocks Canopy Growth (NYSE: CGC), Aphria (OTC: APHQF)  and Aurora Cannabis (OTC: ACBFF).

Sectors like industrials and financials also made positive contributions. Cannabis stocks were the strongest.

What were the stocks holding up the TSX?

Top performing stocks:

Canopy Growth: + 63.33 percent
Enercare: + 60.96 percent
Aphria: + 51.64 percent
Parkland Fuel: +34.40 percent
Air Canada: + 29.88 percent

Three of the top six performers on the TSX this quarter were cannabis companies. Find out more about the stocks taking top spots – Canopy Growth Corp., Aurora Cannabis Inc. and Aphria Inc.

Written by Jason Bagg

Mr Bagg has over 20 years experience in financial services ranging from Capital Markets to Private Equity. Mr Bagg has helped clients build wealth, reduce taxes and plan for retirement. Drawing on his experience, Mr Bagg has spoken on different panels regarding investing and has written numerous due diligence reports and white papers in this area.

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