Investors in Canada have flocked from cannabis to energy in recent years, according to the Toronto Stock Exchange’s recent TSX30 list.
The TSX30 ranks the top 30 performing stocks on the exchange, based on both share price appreciation and dividends paid. In total, the 30 top performing companies on this year's TSX30 generated $210 billion for investors.
There are three B.C. headquartered companies on this year’s list, including Teck Resources (TSX:TECK.B), and two exploration companies that are part to the Lundin Group. -- Filo Corp. (TSX:FIL), an exploration company focused on Filo del Sol copper project in Argentina, and International Petroleum Corporation (TSX:IPCO), an oil and gas exploration company focused on assets in Canada, Malaysia and France.
It’s perhaps not surprising to see a B.C.-based oil and gas exploration company on this year’s list, given how energy companies have dominated the TSX30 for the last three years now.
“In terms of energy (companies) we have 11 this year,” said TSX vice president Chris Birkett. “But we also have a number in the energy services. Energy’s been strong for the last three years running.”
More than half of the companies on this year’s list are headquartered in Alberta. It’s worth noting that two of the Alberta-based energy companies on this year’s list -- ARC Resources (TSX:ARX) and Canadian Natural Resources Ltd. (TSX:CNQ) – are major players in B.C.'s Montney formation. CNRL accounts for 13 per cent of the natural gas and liquids produced in B.C. and ARC accounts for 11 per cent, according to the BC Energy Regulator.
Energy companies have dominated the TSX30 since 2022, Birkett said.
“The three years prior to that, we didn’t actually see any energy companies,” he said.
Two sectors that enjoyed some frothiness a few years ago were cannabis and hydrogen. The bloom has since come off those roses.
Ballard Power (TSX:BLDP) made the TSX30 list in 2019, 2020, and 2021, but has since dropped off. In 2019, there were four cannabis companies on the TSX30. There are none this year.
