The S&P/TSX Composite Index records stocks for Canadian companies listed on the Toronto Stock Exchange, covering 95 percent of the country’s market, according to Trading Economics. Standard and Poor's compiles the list that includes both income trust and stock units.
Natural resources such as crude oil are the majority of commodities traded on the Toronto Stock exchange and the S&P/TSX Composite Index focuses heavily on the changes in these stocks, as detailed by Investopedia.com. Canada has the third-largest oil reserve in the world, states Natural Resources Canada.
There are 10 categories of securities included in the index, including telecommunication services, consumer staples, financial, information technology and utilities, cites Investing News. The index’s categories by volume include 36 percent for financials, 23 percent for energy, 9 percent for materials and 8 percent for industrial.
In 2002, the S&P/TSX Composite Index replaced the TSE300 Composite Index and overhauled the index’s structure and management. Stock market sectors went from 14 to 10, and the review and adjustment period went from annually to quarterly. Other changes include adjusting the number of companies from 300 to a variable determined by the index’s management. Since the change, the number of companies listed in each sector mirrors the current market, as demonstrated by the hike of oil prices and the number of energy companies listed between 2005 and 2007, states Investing For Me.