Shopify replaced by RBC as most valuable company in weakened tech industry – Business News

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Shopify replaced by RBC as most valuable company in weakened tech industry - Business News


Shopify Inc. lost its crown as Canada’s Most Valuable Company as its total market capitalization of all classes of shares fell below Royal Bank amid the continued decline of the tech sector.

The Ottawa-based tech company rose to number one last May as its stock price started a phenomenal run, quadrupling its value. However, stocks have fallen almost 30% from their high of $ 1,900.58 on February 10.

Shopify’s total value ended Thursday at $ 164.1 billion, with its shares falling 3.8% to $ 1,337.52. Meanwhile, Royal Bank rose to $ 165.7 billion after its shares edged up 0.29% to $ 116.29.

The market value of Shopify’s listed shares fell below the value of Canada’s largest bank earlier this month, but has since fallen almost 9%. Thursday’s move reflects the total value of all Shopify share classes.

The reversal of the positions of the two companies is an indicator of general market movement in the first three months of 2021, said Michael Currie, vice president and investment advisor at TD Wealth Management.

“What we’ve really seen basically throughout 2020 is that growth stocks have been fantastic, value stocks haven’t done anything. And what we are seeing at the start of this year is almost the complete opposite, ”he said in an interview.

High-valued names like Shopify are the ones declining the most, while undervalued companies are enjoying big increases as part of investor repositioning.

Canada’s tech sector lagged the most for the day, joining materials on the downside.

Materials fell on weaker metals prices, shares of Lundin Mining Corp. losing 4.6 percent while Teck Resources Ltd. fell 2.6 percent and First Quantum Minerals Ltd. fell 2.2 percent.

The April gold contract was down US $ 8.10 to US $ 1,725.10 per ounce and the May copper contract was down 8.6 cents to US $ 3.98 per pound .

Energy recouped some of its early losses to rise that day, although crude oil prices fell to partially offset Wednesday’s big gain.

The May crude oil contract fell US $ 2.62 or 4.7 percent to US $ 58.56 a barrel and the May natural gas contract rose 4.8 cents to nearly 2 cents. , $ 62 per mmBTU.

The shares of Canadian Natural Resources Ltd. increased by 1.6%.

The drop in crude oil prices reflected demand concerns as COVID-19 infections increased in Europe and India, offsetting the surge received the day before a ship grounded in the Suez Canal.

The day started with good economic data as the number of first jobless claims in the United States fell to 684,000 and GDP grew by 4.3% in the last three months of 2020.

“Either way, strong numbers in both of those areas, but there’s still some way to go before we see a full recovery,” Currie said.

Markets then fell after Federal Reserve Chairman Jerome Powell hinted in an interview that he would one day start removing monetary stimulus.

“Everyone knows that someday this will happen, but I guess it scared people a bit,” Currie said, indicating that the Dow fell almost 350 points before recovering.

“I guess buyers are coming back to the market and enjoying a dip here. ”

The S & P / TSX Composite Index closed 22.81 points higher at 18,651.10.

In New York, the Dow Jones Industrial Average climbed 199.42 points to 32,619.48. The S&P 500 Index was up 20.38 points to 3,909.52, while the Nasdaq composite was up 15.79 points to 12,977.68.

Healthcare led the top nine sectors that gained on the TSX.

Consumer discretionary received a boost from BRP Inc., whose shares rose 3.3% after posting a strong quarter.

The financial services sector grew 0.6%, with the Bank of Montreal increasing 1.5%.

The Canadian dollar traded at 79.33 US cents against 79.61 US cents on Wednesday.

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