Empire Company Limited (EMP.A) Plunges -0.66% on Jan 30

January 30, 2018 - By Darrin Black

Shares of Empire Company Limited (TSE:EMP.A) last traded at 24.01, representing a move of -0.66%, or -0.16 per share, on volume of 164,100 shares. After opening the trading day at 24.2, shares of Empire Company Limited traded in a close range. Empire Company Limited currently has a total float of 271.30M shares and on average sees 337,823 shares exchange hands each day. The stock now has a 52-week low of 16.01 and high of 26.34.

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. Empire Company Limited 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 Empire Company Limited 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 Empire Company Limited.

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 Empire Company Limited (TSE:EMP.A) news were published by: Fool.ca which released: “Empire Company Limited: Is the Recovery Real?” on September 18, 2017, also Seekingalpha.com with their article: “Empire Company’s (EMLAF) CEO Michael Medline on Q2 2018 Results – Earnings …” published on December 13, 2017, Fool.ca published: “Why Empire Company Limited Is Down Over 2%” on December 13, 2017. More interesting news about Empire Company Limited (TSE:EMP.A) were released by: Fool.ca and their article: “Empire Company Limited May Be Heading for Another Plunge” published on June 16, 2017 as well as Fool.ca‘s news article titled: “Why Empire Company Limited Soared 14.48% on Thursday” with publication date: September 15, 2017.

Empire Company Limited, together with its subsidiaries, engages in the food retail and related real estate business in Canada. The company has market cap of $6.51 billion. It operates through two divisions, Food Retailing, and Investments and Other Operations. It has a 72.76 P/E ratio. It owns, affiliates, and franchises approximately 1,500 retail stores under various retail banners, including Sobeys, Safeway, IGA, Foodland, FreshCo., Thrifty Foods, and Lawton's Drug Stores; and approximately 350 retail fuel locations.

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