TSX is scorching - save for mining stocks

TSX is scorching - save for mining stocks
TIM KILADZE
RTGAM

It's been a tough year for Canadian capital markets. Deal flow is down. Trading volumes took a big hit. Confidence has waned. It all paints a picture of a country that's struggling in finance.

The truth is, Canadian stocks are on fire, so long as you discount miners. Without them, our stock market is just about as hot as the U.S.

The S&P/TSX Composite Index is up 8 per cent since January, while the S&P 500 has tripled our return. But those figures can be misleading, because you they don't compare apples to apples. Strip out Canadian mining stocks, whose sub-index has plummeted 29 per cent in 2013, and you start to see some similar returns.

Lately Canadian financials have proven this, with their sub-index up 17 per cent this year. But other indices also offer some pretty startling stats: the consumer discretionary sub-index is up 37 per cent, driven by companies like Dollarama Inc.; the technology sub-index is up 31 per cent, boosted by the likes of CGI Group; and the industrials sub-index soared 30 per cent since January on the back of big gains from Air Canada and engineering firms such as Stantec Inc.

If this all sounds familar, it's because the same situation played out last year. In 2012 the S&P 500 returned 12 per cent, while the S&P/TSX Composite Index churned out a total gain of just 2 per cent. Yet the aggregate numbers didn't tell the whole story because mining stocks got burned, while certain sectors, such as real estate, were scorching hot.

This year's hot market outside of resources has had a big effect on what sectors saw deal flow. In an unusual twist, retail has been one of the industries for dealmaking in 2013, with takeovers led by Loblaw Co. Ltd., Hudson's Bay Co. and Sobeys Inc.

Subdued resources have also re-worked the sector weightings of the TSX in a big way. Before the big mining bust, the financials, energy and materials sub-indices typically accounted for 20 to 25 per cent of the total Composite Index each. Today those weightings are all out of whack. Financials now make up 35 per cent, energy 25 per cent, and materials just 12 per cent.

Volume Leaders

• TSX
• TSX Venture
• US
• NASDAQ
• AMEX
• NYSE

Symbol	Name	Last Trade	Change	Volume	Related Info
ATH.TO	ATHABASCA OIL CORP	6.513:59PM EDT	0.02(0.31%)	7,629,447	Chart, Profile, More
PLI.TO	PROMETIC LIFE SCIENCES INC	0.894:44PM EDT	0.06 (6.32%)	5,373,027	Chart, Profile, More
BBD-B.TO	BOMBARDIER INC., CL. B, SV	5.324:15PM EDT	0.06(1.14%)	5,037,394	Chart, Profile, More
BTO.TO	B2GOLD CORP.	2.723:59PM EDT	0.12 (4.23%)	4,893,081	Chart, Profile, More
CQE.TO	CEQUENCE ENERGY LTD.	1.893:59PM EDT	0.09(5.00%)	4,236,634	Chart, Profile, More
BB.TO	BLACKBERRY LIMITED	8.773:59PM EDT	0.22(2.57%)	3,890,754	Chart, Profile, More
YRI.TO	YAMANA GOLD INC	10.223:59PM EDT	0.43 (4.04%)	3,767,478	Chart, Profile, More
AC-B.TO	AIR CANADA, CL.B	5.504:20PM EDT	0.17(3.19%)	3,527,157	Chart, Profile, More
G.TO	GOLDCORP INC	27.483:59PM EDT	0.83 (2.93%)	3,189,360	Chart, Profile, More
ELD.TO	ELDORADO GOLD	7.224:54PM EDT	0.27 (3.60%)	2,989,985	Chart, Profile, More
ABX.TO	BARRICK GOLD CORPORATION	20.713:59PM EDT	0.44 (2.08%)	2,776,630	Chart, Profile, More
TLM.TO	TALISMAN ENERGY INC.	13.253:59PM EDT	0.34(2.63%)	2,742,690	Chart, Profile, More
TRI.TO	THOMSON REUTERS CORPORATION	38.583:59PM EDT	1.26(3.38%)	2,699,619	Chart, Profile, More
OSK.TO	OSISKO MINING CORPORATION	5.263:59PM EDT	0.16 (2.95%)	2,502,409	Chart, Profile, More
MFC.TO	MANULIFE FIN	18.323:59PM EDT	0.33(1.83%)	2,435,592	Chart, Profile, More
CNQ.TO	CDN NATURAL RES	33.613:59PM EDT	0.92(2.81%)	2,422,198	Chart, Profile, More
K.TO	KINROSS GOLD CORP.	5.403:59PM EDT	0.12 (2.17%)	2,378,683	Chart, More
RY.TO	ROYAL BANK OF CANADA	70.063:59PM EDT	0.45(0.65%)	2,256,442	Chart, Profile, More
ECA.TO	ENCANA CORP.	19.053:59PM EDT	0.04 (0.21%)	2,139,101	Chart, Profile, More
IMG.TO	IAMGOLD CORP	5.543:59PM EDT	0.19 (3.32%)	2,122,734	Chart, Profile, More
NGD.TO	NEW GOLD INC.	6.433:59PM EDT	0.12 (1.83%)	1,975,941	Chart, Profile, More
BNS.TO	BANK OF NOVA SCOTIA	63.544:15PM EDT	0.67(1.07%)	1,810,096	Chart, Profile, More
BMO.TO	BANK OF MONTREAL	73.904:28PM EDT	0.83(1.14%)	1,742,156	Chart, Profile, More
SU.TO	SUNCOR ENERGY INC.	38.003:59PM EDT	0.54(1.44%)	1,741,667	Chart, Profile, More
TCK-B.TO	Teck Resources Limited	29.613:59PM EDT	0.06 (0.20%)	1,664,937	Chart, Profile, More