In the wake of the economic disruptions linked to the pandemic, the share price of Capital régional et coopératif Desjardins (CRCD) fell during the last semester.
As of the six-month period ended June 30, the stock was worth $ 15.07, a decrease of $ 0.87 (5.2%) from last December.
CRCD’s actions were weighed down by investments impacting the Quebec economy. These generated negative non-annualized returns of 9.6% over the past six months.
This loss in value is mainly due to the retail and automotive sectors as well as the arts, entertainment and leisure sectors.
Other industries that have an impact in Quebec have performed better during the health crisis, such as transportation, civil engineering, as well as scientific and technical services, Desjardins Capital reported.
As for the other CRCD portfolio, the one relating to investments that do not have an economic impact in Quebec, it posted a positive return with an increase of 2.2% in the last half of the year.
Desjardins Capital explains this situation by a significant weighting of its securities in the markets.
Despite the economic difficulties of the last semester, the expected long-term return on CRCD shares is 4%, which is “reasonable” in the current environment, according to Desjardins Capital.
–
