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Post says TSX-V keeps up momentum in first half

2014-07-03 09:35 ET - In the News

The Financial Post reports in its Thursday edition that with resources rebounding, the Canadian small-cap universe has outperformed its larger counterparts so far this year. The Post's David Pett quotes Vincent Roy at BlackRock Asset Management as saying: "It's a simple story. You're seeing good momentum from energy stocks, gold stocks and, more generally, materials stocks. That's been a main driver of performance for small caps." The S&/TSX small cap index is up 18 per cent in 2014, more than six percentage points better than the S&P/TSX 60, and over five points better than the broader-based S&P/TSX composite. The outperformance is a nice change for Canadian small caps, which remain 14 per cent off their all-time high set in July, 2007. Mr. Roy expects the momentum in small caps to continue in the second half of 2014, due to better earnings expectations in the energy sector and some "fairly lofty growth" projections for mining stocks next year. Brian Belski at BMO Capital Markets, however, is less bullish, saying small caps and Canadian stocks in general have jumped mostly because of near-term geopolitical risks and not because strong fundamentals can support higher prices longer term.

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