-- The Toronto Stock Exchange is down just 11 points at midday with energy, down 1.2%, the biggest decliner.
Info tech (+2.4%) and utilities (+0.8%) are the best performers.
CIBC writes, in a note entitled 'Top-10 Best Ideas' for May said its factor mapping for the TSX index is "more positively skewed towards quality, value, and free-cash-flow yield, with less emphasis on the AI-growth factor" compared to its' U.S. mapping. "In today's narrow breadth environment, high grading and barbell strategies may serve as effective diversifiers. Combining momentum and trend factors for capital appreciation with value and yield for cheapness and income can support risk management," the bank added.
CIBC notes the large-cap S&P/TSX 60 index recently began to outperform the broader S&P/TSX Composite index and the small-cap TSX Venture index. It said this shift in relative strength by size may indicate investors' preference for quality and liquidity, high grading is often associated with a defensive stance. CIBC said its best ideas for the month of April returned 8.53% with a 80% positive hit rate and 488 bps of positive alpha relative to the TSX index. Year to date, the monthly baskets have returned +12.75%, outperforming the benchmark TSX Index by 564 bps. Comparatively, the TSX Index returned +7.1% and SPX index returned +5.3%.
The following are its top-10 best ideas for the month of May: Cenovus Energy (CVE.TO), Keyera (KEY.TO), Whitecap Resources (WCP.TO), Bank of Montreal (BMO.TO); Manulife Financial (MFC.TO), Power Corp (POW.TO); Magna International (MG.TO), Restaurant Brands (QSR.TO), Methanex (MX.TO), Granite Real Estate (GRT-UN.TO).