Canada Stocks: Toronto market pares weekly decline on seasonal optimism

Magna International

01/11/2024 20:35

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      TSX ends up 0.4% at 24,255.16
    

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      For the week, the index declines 0.9%
    

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      Tech sector ends 1.3% higher
    

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      Consumer discretionary adds 2%
    

  
 (Updates at market close)
    By Nikhil Sharma and Fergal Smith
       Nov 1 (Reuters) - Canada's main stock index rose on
Friday, led by technology and consumer discretionary shares, as
investors took advantage of the previous day's sharp decline and
cheered the move into a seasonally strong period for the market.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 98.29 points, or 0.4%, at 24,255.16, after
posting on Wednesday its biggest weekly decline in nearly three
months.
    "I think there's probably a bit of rallying given the
sell-off that happened yesterday," said Kevin Headland, co-chief
investment strategist at Manulife Investment Management.
    "Seasonality tends to be strong" as November and December
are typically strong months for the index, Headland added.    
    Domestic economic data was upbeat. It showed that
manufacturing activity increased at a faster pace in October as
production and employment picked up in anticipation of rising
orders.
    The consumer discretionary sector climbed 2%, helped by a
6.5% jump in the shares of Magna International  MG.TO  after the
auto parts maker reported its third-quarter results.
    Shares of Air Canada  AC.TO  also posted strong gains,
rising nearly 14%, after the company raised its annual core
profit forecast and announced share buybacks, benefiting from
strong demand for international travel.
    The move in Air Canada boosted industrials, which ended
0.7%higher, while technology added 1.3% and heavily weighted
financials were up 0.9%.
    For the week, the index was down 0.9% as energy and
interest-rate sensitive stocks lost ground and investors took
some profits ahead of Tuesday's U.S. presidential election.
    Energy fell 0.9% on Friday as oil  CLc1  gave back much of
its earlier gains, while the utilities and real estate sectors
fell 0.9% and 0.8% respectively as bond yields rose.

 (Reporting by Fergal Smith in Toronto and Nikhil Sharma in
Bengaluru; Editing by Vijay Kishore and Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))