E Tuesday Market Review

My secondary website is now operative and for the first time this month, I am able to post a blog without help. The issue however will still not go out automatically, so I will have to hand-deliver it still.

There is news galore so enough about technology. It is clear from the hassles I am having setting passwords for my new TD Ameritrade account, which I have to do 4x a day, that the whole internet is gummed up by security fears and obstacles. Wall Street did not repeat its previous 2-days of rising with the Dow-Jones hit particularly hard because this index is changing its list to include more tech stocks and removing old-timer Exxon (XOM). Unlike other indexes the D-J includes stock based on their share price and stock splits cause them to be lower weighted. This contrasted with bullishness in foreign markets and a lower dollar exchange rate. We have a reporting company and a new share buy.

Reporting company

*Scotiabank, BNS of Canada, reported taking a large provision for credit losses in its Q3 report early today, but it also hinted that the worst of the coronavirus impact on the economy may have passed. Its provisions were taken at 1.36% of its loan book, vs 1.19% in Q2 and 0.47% in Q3 2019. Natch this took down adjusted earnings per share by a huge 55% to C$1.04/sh. Bank of Nova Scotia is more heavily invested in Latin America than other banks from up north.

It also missed a consensus forecast of EPS at C$1.34. However, it beat the revenue forecast of $5.82 bn.

BNS offset this with a 90 loony cents dividend payable on Oct. 28 to shareholders of record Oct. 6. You can also take your dividend in the form of new shares, not from the treasury, but via purchase by Computershare of Canada. This will boost the share price. So BNS stock only fell by 10 loony cents or 0.23% today. The US$ stock was hit harder, falling 20 cents of 0.46%. In the pre-market, the share actually rose (the conference call was at 7 am my time.)

*In the wake of Bank of Nova Scotia, another holding, Banco Latinoamericano de Comercio Exterior, BLX of Panama, gained 2% today. 

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