Updates at market close
TSX ends up 0.6% at 34,541.27
Energy sector adds 1.8% as oil settles 6.3% higher
Cameco rises 6.5% after uranium supply deal with India
Factory PMI rises to highest level since January 2025
By Fergal Smith
March 2 (Reuters) - Canada's energy-linked main stock index rose to a record high on Monday, led by energy shares as oil prices rose following the weekend's attacks on Iran by the U.S. and Israel.
Stocks were also helped by upbeat domestic manufacturing-sector data.
The S&P/TSX composite index .GSPTSE rose 201.28 points, or 0.6%, at 34,541.27, surpassing the record close posted on Thursday.
Oil and gas prices surged, the U.S. dollar gained and some major stock indexes around the world fell as the U.S.-Israeli air war against Iran widened and looked set to last for weeks, threatening to upend global economic growth and perhaps reignite inflation.
The energy sector .SPTTEN, which has a roughly 18% weighting on the TSX, gained 1.8% to reach its highest level since September 2008.
"When we see the markets react to something like Iran, it's not always a bad thing for Canadian investors because our market is so leveraged to oil," said Philip Petursson, chief investment strategist at IG Wealth Management.
U.S. crude oil futures CLc1 settled 6.3% higher at $71.23 a barrel.
Financials .SPTTFS, the TSX's most heavily weighted sector, added 0.5% and industrials .GSPTTIN were up 1.2%.
The S&P Global Canada Manufacturing Purchasing Managers' Index, a measure of factory-sector health, rose to 51.0 in February from 50.4 in January, posting its highest level since January 2025.
Five of the 10 major sectors ended lower, including technology .SPTTTK, which lost 0.7%. The materials group .GSPTTMT, which includes metal mining shares, was down 0.2% as copper HGc1 prices fell.
The Indian government and Cameco CCO.TO signed a uranium supply agreement to support India's nuclear ambitions and to work towards clean, reliable base load power, Canadian Prime Minister Mark Carney said. Shares of Cameco gained 6.5%.
(Reporting by Fergal Smith, Nivedita Balu and Utkarsh Tushar Hathi; Editing by Shilpi Majumdar and Jonathan Ananda)
((fergal.smith@thomsonreuters.com; +1 647 480 7446))