Markets start week with gains

Trading Monday started with and ended with a broad-sector bullish attitude. While the beginning of the day was muted, buyers found their footing and sent all of the majors up about 1%. Led by the Nasdaq, which had gains on the day of 1.7%.

In Canada, the big news over the weekend was the split of Oil & Gas giant Encana (ECA). The company, in an effort to raise its multiple and thereby, raising shareholder value, decided to split the company into a gas company and an oil company. With record high commodity prices Investors have definitely favoured the "pure-play" names in the Energy sector. Encana's move is an attempt to turn the company from one Oil & Gas conglomerate, into two pure-plays.

So, Investors are happy with the move as shares opened higher and stayed relatively flat throughout the day, resulting in gains of almost 7%. How this move will effect the company going forward, is not yet known, but management seemed confident that the "pure-play" strategy will increase Encana's multiples and thereby increasing share prices for each piece.

Disclosure: Author does not own ECA