Everything You Need to Know on Friday: Manulife's 20% Year-to-Date Stock Rise Reflects Long-Term Strategy, Says CEO
Good morning mooers! Here are things you need to know about today's market:
● S&P/TSX 60 Index Standard Futures are trading at 1,339.00, up 0.23%
● Equity sales rebound 98% in Toronto Stock Exchange as copper, gold prices surge
● Manulife's 20% year-to-date stock rise reflects long-term strategy, says CEO
● Tilray Brands lays ground for equity raising to fund acquisitions
Market Snapshot
Today, the Canadian dollar is trading at 73.42 cents at US dollar, a slight decrease from Thursday.
S&P/TSX 60 Index Standard Futures are trading at 1,339.00, up 0.23% from previous close.
Commodities
Equity Sales Rebound 98% in Toronto Stock Exchange as Copper, Gold Prices Surge
Following a challenging period for shares sales, the Toronto Stock Exchange is experiencing a resurgence, largely propelled by mining companies capitalizing on elevated copper and gold prices.
From January through April, the total financing on the exchange saw a sharp 98% increase to C$4.9 billion from C$2.5 billion, based on TMX Group Ltd.'s data. This marks a significant recovery from what was a notably tough year for raising capital in Canada's premier equity market.
Leading the charge was First Quantum Minerals Ltd., which executed a C$1.55-billion share offering in February, with Capstone Copper Corp. not far behind, securing C$431 million through a combination of new shares and existing shareholder stock earlier in the same month, as detailed by Bloomberg's reports.
Activity heightened in April, with 58 transactions amassing C$1.6 billion, a substantial climb from the 21 deals totaling C$556 million seen in the previous year's corresponding month.
Michelle Khalili, Managing Director and Global Head of Equity Capital Markets at Scotiabank, commented, "The start of 2024 might have been subdued, but we've witnessed a notable uptick in Canadian equity issues this spring, a trend that's holding steady into May." She anticipates that the cuts in interest rates will inject further vigor into equity issuances as the year progresses.
The surge in stock sales can be largely attributed to the mining sector, which has been at the forefront of financings on both the Toronto Stock Exchange and the smaller Venture exchange. In the year's first four months, mining enterprises amassed C$4.4 billion, accounting for an impressive 71% of the total C$6.2 billion raised during that timeframe.
Stocks to watch
Manulife's 20% Year-to-Date Stock Rise Reflects Long-Term Strategy, Says CEO
During a Wednesday conversation with BNN Bloomberg, Roy Gori, the CEO of $Manulife Financial Corp(MFC.CA$, highlighted that the firm is experiencing significant momentum, thanks in large part to its operations in Asia and the wealth management sector. Upon taking the helm in 2017, Gori set a vision for transforming Manulife into the most technologically advanced and customer-focused entity in the sector, building on his past experience in expanding the company's presence in Asia.
Manulife's stock has witnessed an impressive ascent, climbing more than 20% since the start of the year. Gori attributes this performance to the company’s ongoing emphasis on organic development, with the Asian market playing a pivotal role.
"Asia remains a central pillar for our growth strategy... It's an area with tremendous growth potential. The region's insurance and wealth management sectors are still nascent, presenting substantial opportunities," Gori remarked.
Nonetheless, Gori was clear that Manulife's strategy isn't limited to any single market or region.
"Our strength lies in our diversified operations, which equip us to navigate through turbulent times should any arise across the globe," he stated.
Tilray Brands Lays Ground for Equity Raising to Fund Acquisitions
$Tilray Brands Inc(TLRY.CA$ is prepared to raise up to $250 million through the sale of shares to bolster a war chest for acquisitions and growth when the U.S. rescheduling of cannabis comes into effect.
The cannabis company said Friday it filed a prospectus with the U.S. Securities and Exchange Commission under which it may sell its shares via "at-the-market" offerings handled by TD Securities and Jefferies.
The timing and amount of any stock sales will be determined by a variety of factors, Tilray said.
The company, which is listed on Nasdaq as well as the Toronto Stock Exchange, said any proceeds from an equity raising would be used to fund strategic acquisitions or investments in businesses, including the potential purchase of assets in the U.S. and internationally that capitalize on expected regulatory changes.
The Biden administration is seeking to reclassify marijuana as a less dangerous drug, which would make it easier to buy and sell, and promises to boost the profitability of the multibillion-dollar industry. Last month, Attorney General Merrick Garland submitted a proposal for White House review that would move marijuana out of the government's most restrictive drug classification, and this week he officially initiated the process.
Source: BNN Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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