Canada Stocks Beat U.S. by Most in 13 Years and Have Room to Run

  • Heavyweight banks, oil stocks drive TSX to 3.1% gain in Q1
  • ‘At any metric, the TSX looks cheaper than the S&P 500’: CIBC

The S&P/TSX Composite Index has gained 3.1%, outperforming the S&P 500 by more than 8 percentage points. That’s the widest outperformance in a quarter in 13 years.

Photographer: Cole Burston/Bloomberg

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The surge in oil prices has fueled a rally in Canadian stocks this year which strategists say still has room to run.

The S&P/TSX Composite Index has gained 3.1%, outperforming the S&P 500 by more than 8 percentage points. That’s the widest outperformance in a quarter in 13 years. Energy and materials stocks have surged as the war in Ukraine sparked a rush to oil and to haven assets, propelling the natural resource-heavy TSX to fresh highs.