February proved to be an eventful month for equity investors, with the S&P/TSX Composite Index achieving a remarkable 7.57% rise. This growth was broad-based, with gains observed across nine of the eleven sectors. Notably, seven sectors saw price returns exceeding 6% during this period.
Sector Performances in February
The standout sectors included:
- Materials (Gold and Silver Stocks): 21.6%
- Consumer Discretionary: 10.4%
- Consumer Staples: 10%
- Energy: 8.5%
- Healthcare: 8.4%
- Utilities: 8.1%
- Industrials: 6.3%
Sid Mokhtari’s March Stock Picks
Sid Mokhtari, CIBC’s chief market technician, publishes a monthly list of top stock picks. His selections are derived from the largest 100 firms based on market capitalization within the S&P/TSX Composite Index. Historically, Mokhtari’s recommendations have outperformed the index in diverse market climates.
In February, his portfolio rose by 9.79%, outpacing the S&P/TSX Composite Index by 2.22%. Over the last four years, his selections have consistently yielded better returns than the index.
Performance Highlights
Key performance statistics include:
- In 2025: Portfolio rose 51.3% vs. 28.3% for the index
- In 2024: Outperformed by 5.8 percentage points
- In 2023: Outperformed by 6.3 percentage points
- In 2022: Outperformed by 2.7 percentage points
New Additions for March
Mokhtari’s March portfolio includes nine new stocks and one from the previous month. Notably, he increased the portfolio’s energy exposure from 30% to 40%. New additions comprise:
- Keyera Corp. (KEY-T)
- Paramount Resources Ltd. (POU-T)
- PrairieSky Royalty Ltd. (PSK-T)
- Peyto Exploration & Development Corp. (PEY-T) – carryover from February
The second-largest sector in his portfolio is materials, featuring:
- CCL Industries Inc. (CCL-B-T)
- Kinross Gold Corp. (K-T)
Other significant selections include:
- Financials: Trisura Group Ltd. (TSU-T)
- Consumer Discretionary: Magna International Inc. (MG-T)
- Communication Services: Rogers Communications Inc. (RCI-B-T)
- Utilities: ATCO Ltd. (ACO-X-T)
Market Trends and Outlook
Historically, the S&P/TSX Composite Index averages a return of 1% in March. Most sectors see gains, with the health care sector showing a notable average loss of 2.9%. Leading sectors this March include:
- Energy: 3.1%
- Industrials: 1.3%
- Consumer Discretionary: 1.2%
- Consumer Staples: 1.2%
- Financials: 1.1%
- Utilities: 1%
Mokhtari expressed caution in his report, citing potential weaknesses in growth sectors. He advised investors to consider a defensive approach, particularly with high-beta stocks in technology and consumer cyclical sectors, which appear vulnerable to downside risks.
For more insights, a Q&A with Sid Mokhtari on equity markets, stocks, and ETFs will be available soon on El-Balad. Submit your questions for Mr. Mokhtari via email for a chance to have them addressed.
