“It’s good news for the TSX,” said Greg Taylor, chief investment officer at Purpose Investments. “The energy companies that survived the days of ESG are coming out with better balance sheets and as much better operators, and they’re set up to do really well in this high commodity price environment.”
Oil and metals stocks have been on a tear this year as investors sought haven assets with markets reeling from a tight oil market, economic growth uncertainty and a rising interest-rate environment. That propelled the TSX to several record highs in March.
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Bank stocks, on the other hand, have been held back for all the same reasons as the U.S. Federal Reserve, Bank of Canada and other central banks plan to aggressively tighten monetary policy to temper surging inflation.
The S&P/TSX Energy Sector Index has rallied 34% this year and the S&P/TSX…
