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Summary
- The S&P/TSX Venture Composite Index zoomed 52 per cent in 2020. It has gained 5.33 per cent year-to-date (YTD), driven by the junior tech and healthcare stocks’ performance.
- The S&P/TSX Composite Index added nearly 3 per cent growth last year. The benchmark index is down by 0.50 per cent month-to-date (MTD).
- Tech and mining sectors ruled the Canadian stock market in all market cap segments, with returns of 55.17 per cent and 31.74 per cent in 2020, respectively.
Apart from the pandemic-led massive market meltdown in March 2020, global indices managed to pull off good returns in 2020. The global economy witnessed significant short-term and long-term COVID-19 impacts last year.
In the last two months of 2020, stock markets witnessed an exceptional surge on the back of COVID-19 vaccine development. This led to the S&P/TSX Composite Index yield almost 3 per cent returns in 2020.
On Wall Street, the S&P 500 saw over 16 per cent growth last year. The Nasdaq Composite Index outperformed all senior indices, with a massive 43.6 per cent surge in 2020, driven by the tech rally. The Dow Jones Industrial Average Index also improved by over 7 per cent last year.
Canadian Stock Market Performance
The stock markets set one milestone after another as a record number of new investors started investing last year. The rookie traders have booked profits since January 2021.
This also had an impact on the performances of the two main indices of Canada – the broader Toronto Stock Exchange (TSX) and the junior TSX Venture (TSXV):
S&P/TSX Composite Index's One Year Performance Chart. (Source: EODHD/Others, Thomson Reuters)
The S&P/TSX Venture Composite Index zoomed 52 per cent last year and bounced back 155 per cent from its COVID-19 slump. The junior index is up 5.33 per cent in January, driven by a mini rally in metals and mining and tech stocks.
In contrast, the S&P/TSX Composite Index has marginally declined by 0.50 per cent year-to-date (YTD).
S&P/TSX Composite Index's Year-To-Date Performance Chart. (Source: EODHD/Others, Thomson Reuters)
As per the TSX/TSXV’s investor insights report, released by TMX Group, small cap stocks were the best performers of 2020, with an average growth of 130 per cent.
The large cap, mid cap, micro-cap segments offered double digit returns with 29 per cent, 75 per cent, and 97 per cent, respectively.
Top Performing Sectors: Mining And Technology
Technology stocks ranked either at the first position or the second position in individual sector performers in each market cap division last year. The metals and mining sector grew above the median level in all market capitalization segments.
The S&P/TSX Capped Information Technology Index soared 55.17 per cent. This year, the index has slightly increased by 1.47 per cent. Meanwhile, the S&P/TSX Global Base Metals Index swelled by 31.74 per cent in 2020. However, the index is down by 1.63 per cent YTD.
