The Canadian market closed slightly higher on Tuesday, buoyed by significant gains in the energy sector as oil prices surged in response to heightened tensions in the Middle East after Iran's missile attack on Israel.
Materials stocks also performed well thanks to rising metal prices. However, losses in the technology and healthcare sectors limited the market's overall gains. Shares in the industrial and consumer discretionary sectors mostly ended in the red.
The benchmark S&P/TSX Composite Index, which had dipped to 23,875.68 after a weak start, finished the session up by 33.62 points, or 0.14%, at 24,033.99.
The Energy Capped Index soared 3.4%, with Canadian Natural Resources (CNQ.TO), Baytex Energy (BTE.TO), Imperial Oil (IMO.TO), Veren Inc (VRN.TO), Suncor Energy (SU.TO), MEG Energy (MEG.TO), International Petroleum Corp (IPCO.TO), Athabasca Oil Corp (ATH.TO), Arc Resources (ARX.TO), Parex Resources (PXT.TO), Whitecap Resources (WCP.TO), Pason Systems (PSI.TO), Headwater Exploration (HWX.TO), and Paramount Resources (POU.TO) posting gains between 3% and 4.5%.
In the materials sector, First Majestic Silver (AG.TO), First Quantum Minerals (FM.TO), Pan American Silver Corp (PAAS.TO), Orla Mining (OLA.TO), SSR Mining (SSRM.TO), and Fortuna Silver Mines (FVI.TO) saw increases of 2.5% to 3.1%.
Technology stocks, on the other hand, experienced significant declines. BlackBerry (BB.TO) and Bitfarms (BITF.TO) dropped by 7.6% and 6.7%, respectively. Coveo Solutions (CVO.TO), Celestica Inc (CLS.TO), Quarterhill (QTRH.TO), Dye & Durham (DND.TO), and Computer Modelling (CMG.TO) fell between 2% and 3.4%.
Healthcare stocks also struggled, with Tilray Inc (TLRY.TO) and Chartwell Retirement Residences (CSH.UN.TO) ending down by 3.8% and 1.6%, respectively.
Industrials stocks like Ballard Power Systems (BLDP.TO) and Cargojet (CJT.TO), as well as consumer discretionary stocks such as Aritzia Inc (ATZ.TO), Canada Goose Holdings (GOOS.TO), and BRP Inc (DOO.TO), also saw notable declines.
On the economic front, data from S&P Global revealed that the S&P Global Canada Manufacturing PMI rose to 50.4 in September 2024 from 49.5 in August, marking the first improvement in operating conditions since April 2023. A slight rise in new orders supported this increase, although export orders continued to decline for the thirteenth consecutive month.
In U.S. economic news, the Labor Department reported a modest and unexpected increase in job openings in August. Job openings rose to 8.04 million in August from an upwardly revised 7.71 million in July, contrary to economists' expectations of unchanged figures from the originally reported 7.67 million for the previous month.
Manufacturing activity in the U.S. continued to contract in September, according to a report from the Institute for Supply Management (ISM). The ISM manufacturing PMI remained at 47.2, unchanged from August, with a reading below 50 indicating contraction. Economists had anticipated a slight uptick to 47.5. Manufacturing activity has now contracted for the sixth consecutive month and the 22nd time in the last 23 months.