Q: Hi 5i,
My First look at markets in couple weeks and I see BMO is down almost 4.5 % since monday... Anything concerning happening here that we should be paying special attention to...short term/long term.
Thx
My First look at markets in couple weeks and I see BMO is down almost 4.5 % since monday... Anything concerning happening here that we should be paying special attention to...short term/long term.
Thx
5i Research Answer:
News came out that BMO Capital underperformed the Canadian Bank Index for a second year in a row in 2023 which is likely the reason for the drawdown. Investors did not like this news, but we are not too concerned here and continue to be positive on the outlook for overall Canadian banking stocks in the long term. The sector overall had been weak with some complaints this week about banks' disclosure on 'green' lending (discussed under symbol TD yesterday).