Stock Market Indexes Increase


    Forty-one of the 44 Morningstar Research Inc increased during February, including 20 indices that increased by more than two per cent. The combination of positive stock market indexes outside of Canada with a depreciated Canadian dollar resulted in strong performance for all foreign equity fund categories in Canada for the month. Funds in the Greater China equity and U.S. equity categories were the top performers as both increased by 5.1 per cent for the month. Stock markets in Shanghai, Hong Kong, and Taiwan were up 2.6 per cent, 1.6 per cent, and 3.2 per cent, respectively, with currency effects also providing a boost in all three cases. The only fund indices to lose ground in February were the ones that track the precious metals equity, energy equity, and natural resources equity categories, which were down 2.1 per cent, 2.3 per cent, and 2.4 per cent, respectively. All fixed income fund categories showed gains for the month, with increases ranging from 0.3 per cent for Canadian short-term fixed income to 1.7 per cent for Canadian long-term fixed income.