Winners Rise Amid the Losers in Canada’s $750 Billion Stock Rout

(Bloomberg) -- The confluence of the coronavirus outbreak and a global oil price war roiled Canada’s stocks this quarter, wiping out about $750 billion in value. But while the financial devastation was widespread, some corners of the market stayed afloat.

The S&P/TSX Composite has plunged 22% this year, the worst quarter since 2008, with about less than 10% of its stocks eking out gains and all sectors in the red.

Here’s a look at some who benefited -- and companies that have suffered this quarter.

Winners:

• Ballard Power Systems Inc. (+15%): In the hunt for ESG trades, investors continue to hunt for clean-tech companies.
• Shopify Inc. (+14%): The e-commerce company that helps merchants create an online presence has been able to generate sales despite the closing of physical stores.
• Real Matters Inc. (+14%): Tech stocks have provided a modicum of shelter due to their strong balance sheets and cash flow.
• Innergex Renewable Energy (+14%): Independent power producers and utilities have continued to rise as investors pile cash into the sector amid lower interest rates.
• Cascades Inc. (+12%): The paper-products manufacturer has likely seen increased sales as people hoard toilet paper and other hygiene products.
• Kinaxis Inc. (+8.9%): The provider of supply-chain software may have seen additional sales as companies realized they are unable to quickly adapt to changing conditions with their existing solutions.
• Loblaw Cos. (+8.3%) and Metro Inc. (+6.2%): The grocery chains have surged as Canadians stock up on food, beverages and other products amid lockdowns and restaurant closures across the country.
• Barrick Gold Corp. (+7.2%): The producer of the metal is benefiting as bullion heads for a sixth straight quarterly gain, the longest stretch since 2011.

Losers:

• Oil & gas producers and services providers such as Shawcor Ltd. (-86%), Seven Generations Energy (-82%), Baytex Energy Corp. (-82%) and Crescent Point Energy Corp. (-81%) rounded out the top 10 losers. Oil recorded the worst quarter ever as physical markets collapse amid a price war.
• Bombardier Inc. (-76%): Mired in a massive restructuring plan that will turn the company into a shadow of its former self, the transportation firm temporarily halted its Canadian operations and withdrew its financial outlook.
• Air Canada (-68%): The coronavirus crisis will lead to a capacity cut of as much as 90% next quarter and a temporary reduction of its workforce by about 16,500.
• Methanex Corp. (-66%): The chemicals provider dialed down its methanol production and reassessed capital spending amid a crash in the oil market.
• Spin Master Corp. (-66%): The toy and children’s entertainment company pulled its 2020 outlook due to the impact of the Covid-19 pandemic. Spin Master will provide an update when it reports its first-quarter financials in May.
• Inter Pipeline Ltd. (-63%): The company cut its 2020 capex by 50%, slashed its monthly dividend by 72% and suspended its dividend reinvestment plan.

©2020 Bloomberg L.P.