The Financial Post reports in its Thursday edition that Canadian tech stocks are trading near a decade high as they ride booming U.S. demand for everything from e-commerce to office software while finding themselves far from global trade fights.
A Bloomberg dispatch to the Post says that the S&P/TSX composite's technology index has gained about 23 per cent this year, trouncing the 6.1-per-cent rise of its nearest competitor, industrials. Tech now sports a 4-per-cent weighting in the benchmark equity index, the highest since 4.2 per cent in 2009 when BlackBerry still ruled the smart phone market.
The big gainers include Mitel Networks, the takeover target of a U.K. private equity firm. Constellation Software's share price crossed $1,000 in May as it continues its acquisition streak, while cloud-services company Kinaxis
is up 17 per cent in 2018. "I don't see why this trend would stop," Todd Coupland, an analyst at CIBC World Markets, told the Post. "Those businesses are growing faster than the average company and it's attracting investment. Whether it's e-commerce or social or enterprise cloud, those are all very well-established trends and look to have significant possibilities."
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