Eight energy firms dropped from Canada’s main equity index

Eight Canadian energy companies were booted out of the S&P/TSX Composite Index on Monday because their market capitalisation has dropped below minimum requirements, the latest sign of difficulties facing the country’s oil and gas sector.

Analysts said the rebalancing of Canada’s flagship index underlined the challenge to energy companies in attracting investment amid concerns about lack of new oil pipeline capacity and a glut of inexpensive North American natural gas.