Brookfield Asset Management Inc. (BAM.A) Plunged -1.66% on Jan 10

January 10, 2018 - By Dolores Ford

Shares of Brookfield Asset Management Inc. (TSE:BAM.A) last traded at 53.39, representing a move of -1.66%, or -0.9 per share, on volume of 293,933 shares. After opening the trading day at 54.09, shares of Brookfield Asset Management Inc. traded in a close range. Brookfield Asset Management Inc. currently has a total float of 959.29M shares and on average sees 741,018 shares exchange hands each day. The stock now has a 52-week low of 43.4 and high of 57.04.

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. Brookfield Asset Management Inc. 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 Brookfield Asset Management Inc. 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 Brookfield Asset Management Inc..

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 notable recent Brookfield Asset Management Inc. (TSE:BAM.A) news were published by: Seekingalpha.com which released: “Brookfield Asset Management – Top-Tier Asset Manager Generating Significant Cash” on January 05, 2018, also Reuters.com with their article: “Brookfield Business Partners to buy Westinghouse for $4.6 billion” published on January 04, 2018, Therealdeal.com published: “Brookfield and Onex eyeing takeover of WeWork rival” on December 27, 2017. More interesting news about Brookfield Asset Management Inc. (TSE:BAM.A) were released by: Seekingalpha.com and their article: “GGP edges higher after reportedly rejecting Brookfield proposal” published on December 11, 2017 as well as Business.Financialpost.com‘s news article titled: “Brookfield to buy Westinghouse’s global nuclear business in $4.6-billion deal” with publication date: January 04, 2018.

Brookfield Asset Management Inc. is a publicly owned asset management holding company. The company has market cap of $51.22 billion. Through its subsidiaries, the firm invests in the property, power, and infrastructure sectors. It has a 116.07 P/E ratio. The Company’s property business includes owning and managing office properties, developing master planned residential communities, and offering clients bridge and mezzanine lending, alternative assets funds, and financial and advisory services.

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