Go to: www.tradingeconomics.com 1) ? ‘markets’ => (drop-down menu) => ‘stocks’ ? ‘country’ => ‘Canada’ ? set dates to ‘April 2008’ – ‘April 2013’ => refresh ? chart type => (drop-down menu) =>line...

Analyze the performance (highs/lows, ups/downs etc) of the S&P/TSX (Toronto Stock Exchange) over
this 5 year period. Bear in mind, as the TSX goes… so generally does the value of your investments,
RRSP’s, RRIFs, DCPP’s etc.
The S&P/TSX Composite Index lists the equity prices of biggest companies on TSX on the basis of their
market capitalization.
Many investments like Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund
(RRIF) and Defined Contribution Pension Plan (DCPP) have their funds invested in the stock market. So a
fall in the stock markets will not only affect the investors who have directly invested by purchasing
stocks but also indirect investors who choose the above mentioned investments.
Over the 5 years period from April 2008 to April 2013, the S&P TSX Index had return of approximately
-6%. Starting from 2008, the index shows a decline in performance towards the end of the year. Owing
to recession the energy, mining and financial sectors’ share prices saw a major hit. Shrinking demand
for oil and minerals and credit squeezing by banks added to the grim situation during this period of time.
As the problem spread to other sectors like auto, the impacts were being felt everywhere. Consumer
confidence was gravely shaken. In fact, it was said that close to the end of the year, the consumer
confidence was lowest since 1981-82 level.
Performance in 2011 was overshadowed because of growing European debt crisis as well as lowering of
commodity stock for overall TSX. Since the 75% of the index is made up of energy, financial and material
sector and they plunged causing the overall index to drop. It is a reaction to the volatility in market in
2011. Although there was a three percent gain in the year, it was considered an unhealthy performance
considering the previous two years, 2009 and 2010 growth numbers were in double digits.
The biggest hit was received by the information technology sector which plunged because of decline in
the value of RIM (Research in Motion) stock. The sectors that performed well were healthcare and
telecommunications.
Till April 2013, Canadian stocks dropped because of drop in oil prices. This offset the gains that were
achieved in the previous few months. ...