Phiromya Intawongpan
By Garey J. Aitken, CFA and Timothy W. Caulfield, CFA
Market Overview
The S&P/TSX Composite Total Return Index returned 8.1% in the fourth quarter. Benchmark 10-year interest rates in Canada and the U.S. reached 2023 highs of 4.24% and 4.99%, respectively, in October before ultimately giving way in the final two months of the year to close at 3.11% and 3.88%. Following a U.S. Federal Reserve meeting in December that highlighted easing inflation and slowing economic growth, rates priced in a more dovish consensus.
The advance in Canadian equities was broad-based, with information technology (IT, +24.0%), financials (+12.7%) and real estate (+10.7%) leading the charge. In addition, the defensive/non-cyclical sectors of utilities (+8.2%), consumer staples (+8.1%) and communication services (+7.6%) all performed well, while energy was the only sector to decline (-1.3%). IT capped off a strong year buoyed by…
