UBS Securities Canada Inc. is encouraging investors to look beyond energy stocks alone as a reason to invest in the Canadian market.

In a new report, UBS notes that non-energy sectors on the TSX have also outperformed their U.S. and global peers this year and over the last five and a half years. And, it suggests that the earnings outlook suggests this trend can continue.

UBS says that its latest assessment of the global profit picture shows that the TSX’s non-energy earnings growth in 2006 is expected to outpace all other major regions, with eight of 10 sectors exceeding their global peers and nine of 10 ahead of the U.S.

Already, the TSX’s earnings growth is broadly based UBS says, with eight of the 10 sectors in double digits, and nine of 10 sectors exceeding the growth rate of its counterpart in the US and globally (telecom being the exception in both cases).

Also, UBS says that the TSX’s earnings revisions have been relatively favourable, too — in overall terms, Canadian earnings have been revised up 3.6% over the last three months, with energy up the most, but notably trailing the upward revisions in the other areas.

“In sum, if energy prices continue to rise, domestic and global investors alike can continue to close their eyes and buy the TSX,” UBS concludes. “The real bonus, however, lies in the fact that we also expect the non-energy sectors to continue pulling more than their weight relative to their U.S. and global peers.”