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Commodity Stocks Oust Financials as Canadian Market Heavyweights

  • Energy, materials firms make up 31% of the S&P/TSX Composite
  • This is good news for Canada’s market, Purposes’s Taylor says
Enbridge Inc. oil storage tanks in Hardisty, Alberta.

Enbridge Inc. oil storage tanks in Hardisty, Alberta.

Photographer: Jason Franson/Bloomberg

Canada’s resources sectors have overtaken financials as the heavyweights of its main equity index for the first time since August 2020 as oil and metal prices rally and global banks slump.

Energy and materials companies now constitute about 31.07% of the S&P/TSX Composite Index, surpassing Canada’s banks, insurers and asset managers, which have a 30.9% weighting. Enbridge Inc., which has gained 18% this year, has the third-biggest weighting on the benchmark, while Canadian Natural Resources Ltd. ranks in sixth place.