TSX slips from record high as trade war escalates and bank valuations stretch
Much of the TSX is differentiated from the underlying economy, he said, and sectors including aluminum, steel, forest products, and automotive make up a small share of the market.
National Bank of Canada reported loan loss provisions higher than analysts had estimated even as it beat quarterly profit estimates, Reuters reported, with its shares losing 4.2 percent.
Canada’s five largest bank stocks trade at an average of 15 times forward earnings, the most expensive since 2010.
The financials sector accounts for 34 percent of the TSX’s weighting and has rallied nearly 20 percent since the start of the year, while energy has added 45 percent and the materials group has gained 26 percent.
A Reuters poll of 20 equity strategists and portfolio managers, conducted August 12 to 26, produced a median forecast for the index to dip 1.0 percent to 36,600 by the end of 2026, above the 35,300 expected in a May poll.
