Thursday, February 05, 2009

Out with the plastic, in with the cheese

First it was doughnuts, now it's cheese - Canada's blue chip club is slowly becoming a food emporium instead of an industrial complex. Replacing the beleaguered plastics and chemicals firm Nova Chemicals Corp (TSX:NCX) in the S&P/TSX 60 Index is Canada's largest cheese maker, Saputo Inc. (TSX:SAP). SAP now joins Tim Horton's (TSX:THI) as the latest consumer stock added to the blue chip index. Oh, I may be forgetting about the addition of T-shirt maker Gildan Activewear (TSX:GIL), but the message remains the same: Canada's economy is exceedingly lightweight when it comes to the consumer sector. The TSX will remain the domain of the resource and financial sectors.
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