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Stock impact report

Will a Stronger Loonie Reshape TSX Returns? [Yahoo! Finance Canada]

Manulife Financial Corporation (MFC) 
Last manulife financial corporation earnings: 2/12 05:00 pm Check Earnings Report
US:NYSE Investor Relations: manulife.com/investor-relations
The Canadian dollar has been gaining strength this year. That shift carries implications for TSX investors. A stronger loonie affects sectors differently and could even result in sector leadership on the market shifting. For investors, the impact of a stronger loonie can reshape returns. Here's a look at three companies that could be impacted in different ways by that growing currency strength. Short-term currency headwinds Canadian Natural Resources TSX:CNQ ) is a name known by most investors. Canadian Natural is one of the largest energy producers in Canada. The company earns the bulk of its revenue in U.S. dollars. A rising Canadian dollar reduces the value of every U.S.-dollar barrel sold, even if production volumes remain unchanged. This means that when faced with a stronger loonie, U.S.-denominated revenue converts into fewer Canadian dollars during earnings season. That's a natural headwind that impacts both earnings and cash flow. That could lead to margins tighteni Show less Read more
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