Canadian Pacific Railway Limited (CP) Dipped -0.44% on Jan 10

January 10, 2018 - By Darrin Black

Shares of Canadian Pacific Railway Limited (TSE:CP) last traded at 231.82, representing a move of -0.44%, or -1.02 per share, on volume of 71,062 shares. After opening the trading day at 232.27, shares of Canadian Pacific Railway Limited traded in a close range. Canadian Pacific Railway Limited currently has a total float of 144.97M shares and on average sees 314,120 shares exchange hands each day. The stock now has a 52-week low of 188.36 and high of 234.97.

What Drives The Canadian Economy?

Canada is an important aspect of the North American economy. While the US is relatively bigger, it still has interesting potentials to drive economic growth in the region.
With a thriving equity market, any nation has the capacity to carry out long-term prospects. In Canada, for example, there is the Toronto Stock Exchange (TSX). The benchmark index is the S&P/TSX Composite Index, replacing the TSE 300 Index.

Facts About the S&P/TSX Composite Index

The S&P/TSX Composite Index is a free-float market-capitalization-weighted index like most leading indices in the world. This means that its components are the most actively traded stocks on the TSX, excluding those that are held by inside traders, venture capitalists, and government entities. Stocks held by these stakeholders are not frequently traded, which is why it is useless to include them on indices. Canadian Pacific Railway Limited is one of the stocks traded on it.

The S&P/TSX Composite Index had recorded its all-time high of 15,657.63 in September 2014, thanks to the gains in crude oil prices that primarily led the surge in the Energy and Financials sectors’ the two biggest sectors on the weighted index. Meanwhile, it had recorded its all-time low of 217.50 in February 1950. As of October 31, 2014, more than 1,500 companies are listed on the TSX. By the end of May, the TSX already had a market capitalization of $2.78 trillion. The regular trading session on the TSX begins at 9:30 a.m. and ends at 4:00 p.m. There is also a post-market session that lasts from 4:15 p.m. until 5:00 p.m.

What Makes Up the S&P/TSX Composite Index

There are numerous requirements in order for companies to be included in the S&P/TSX Composite Index. For starters, of course, they need to be listed on the TSX. Consequently, they must operate in accordance to all existing Canadian corporate laws. As Canadian Pacific Railway Limited is still listed, this means that the stock complies with all laws.

In order to become a component of the S&P/TSX Composite Index, a stock must weigh at least 0.05% of the index. Prior to rebalancing, it must have traded an average of C$1 in the preceding three months and at least C$1 in the last three sessions leading to the month of review. Moreover, its trading volume must weigh at least 0.025% of the overall trading volume of all eligible stocks.

About 250 companies make up the S&P/TSX Composite Index. The Financials and Energy sectors alone account for 56% of it, with the former making up 36% and the latter making up 20%. The next biggest sectors include the Materials, Industrial, and Consumer Discretionary sectors.

Because the Organization of the Petroleum Exporting Countries (OPEC) has recently decided to cut oil production rate to lift oil prices, the Energy sector of the S&P/TSX Composite Index is poised for potential gains. Professional analysts might be interested how this will affect Canadian Pacific Railway Limited.

Investing on the TSX is an ideal way to bet on the Canadian economy. With a promising long-term growth, investors will surely benefit from valuable returns be it in the near term or the longer term.

More recent Canadian Pacific Railway Limited (TSE:CP) news were published by: Nasdaq.com which released: “Canadian Pacific Railway Limited (CP) Ex-Dividend Date Scheduled for December …” on December 27, 2017. Also Business.Financialpost.com published the news titled: “‘I’m flesh and blood and I’m here to help you’: Hunter Harrison’s …” on December 20, 2017. Bloomberg.com‘s news article titled: “CSX’s Surprising Second String” with publication date: January 09, 2018 was also an interesting one.

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The company has market cap of $33.61 billion. The firm transports bulk commodities, including grain, coal, potash, fertilizers, and Sulphur; and merchandise freight, such as finished vehicles and machinery, automotive parts, chemicals and plastics, crude, and metals and minerals, as well as forest and industrial, and consumer products. It has a 18.84 P/E ratio. It also transports intermodal traffic comprising retail goods in overseas containers that can be transported by train, ship, and truck, as well as in domestic containers and trailers that can be moved by train and truck.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.