CANADA STOCKS-TSX gains as Magna jumps to 19-month high
By Fergal Smith
Nov 3 (Reuters) - Canada's main stock index ended higher on Monday, led by consumer discretionary shares, but gains were limited as investors awaited clearer signs that corporate earnings will continue to grow despite a domestic economic slowdown.
The S&P/TSX composite index .GSPTSE ended up 14.32 points, or 0.1%, at 30,275.06. The market has been in a holding pattern since posting a record high in mid-October.
"Investors just want confidence that the trend is going to continue," said Philip Petursson, chief investment strategist at IG Wealth Management.
"The expectation is that earnings growth will continue to be positive. ... As long as the guidance coming from companies continues to support that I think these markets can continue to find higher levels."
The downturn in Canada's manufacturing sector eased in October as output and new orders, which have been held back by trade uncertainty, declined at a slower pace. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) rose to 49.6 last month from 47.7 in September, posting its highest level since January.
The consumer discretionary sector rose 1.1%, with the shares of auto parts supplier Magna International MG.TO rising 4.5% to the highest closing level since April 2024. On Friday, the company raised its annual sales forecast.
Heavily weighted financials added 0.6% and energy was up 0.3%. The price of oil CLc1 settled 0.1% higher at $61.05 a barrel as the market balanced the latest OPEC+ supply increase with the group's plans to pause output increases in the first quarter of 2026.
Activist fund Palliser Capital has intensified pressure on Rio Tinto to mount a "now or never" counterbid for Teck Resources, a letter to the board seen by Reuters shows. Shares of Teck were down 0.3%, while the materials group, which includes metal mining shares, added 0.2%.
Five of the 10 major sectors ended lower, including consumer staples, which was down 0.6%.
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