How will the renewal of the issuer bid affect the market price and liquidity of Brookfield’s Class A Preference Shares?

The renewal of Brookfield’s normal‑course issuer bid (NCIB) adds a systematic, up‑to‑10 % “floor” buyer for the Class A Preference Shares over the next 12 months. By committing to acquire shares on the open market at prevailing prices and then cancel them, Brookfield will steadily shrink the public float. A smaller float typically lifts the price‑to‑earnings multiple for preferreds because the reduced supply amplifies the impact of any buying pressure, especially in a market where the bid is known to be active. Consequently, traders can expect a modest but persistent upward bias in the share price, with the most pronounced support forming near the recent trading range’s lower bound (the level at which the NCIB is likely to start stepping in). Technical charts often show a “buy‑back wedge” where price consolidates just above the bid‑related support before resuming an uptrend; watch for a break above the 20‑day SMA as a confirmation of the price lift.

Liquidity will experience a mixed effect. Each purchase removes shares from the order book, which can thin depth and widen the bid‑ask spread, especially on days when Brookfield’s daily purchase volume spikes. However, the NCIB itself injects a predictable source of demand, keeping trading volume elevated relative to the pre‑bid baseline. In practice, you’ll see higher turnover on days when Brookfield’s acquisition activity is disclosed (e.g., quarterly filings) and a tighter price corridor around the bid‑price level. For traders, a practical approach is to buy on modest pull‑backs toward the identified support (the lower edge of the current range) and scale out as the price approaches the upper edge of the corridor or when volume dries up, signaling that the buy‑back floor is weakening. Monitoring TSX’s daily NCIB purchase disclosures will also help anticipate short‑term liquidity squeezes and price spikes.