TSX Comes Off Early Lows, Up Marginally

(RTTNews) - The Canadian equity benchmark S&P/TSX Composite Index was marginally Monday afternoon, recovering gradually from an early setback.

Communications, healthcare and real estate stocks were weak. Technology stocks found some support, while stocks from the rest of the sectors turned in a mixed performance.

Elevated bond yields and persisting worries about geopolitical tensions limited market's upside.

The S&P/TSX Composite Index was up 52.52 points or 0.15% at 35,555.17 a little while ago.

Aurora Cannabis soared more than 15%. Precision Drilling, Ensign Energy Services, Shopify, Canadian Energy Services, Tilray, Kelt Exploration, Paramount Resources, Cameco, Methanex, Birchcliff Energy and Enerflex climbed 3%-5.4%.

Computer Modelling, Lightspeed Commerce, Advantage Oil & Gas, Baytex Energy, Parex Resources, Whitecap Resources, Tourmaline Oil Corporation, Bausch Health Companies, Chorus Aviation, Canfor and Interfor also moved notably higher.

Westshore Terminals, Cargojet, Mattr Corp., TFI International, Russel Metals, Mullen, Thomson Reuters, Badger Infrastructure Solutions, Lundi Gold, Cenvous Energy and CT Real Estate shed 2%-4%.

Cenovus Energy dropped nearly 2%. The company announced it has entered into a definitive arrangement agreement to acquire Athabasca Oil Corporation in a cash and stock transaction with an implied enterprise value of C$5.7 billion. Cenovus expects the acquisition to close in December 2026.

Suncor Energy is down marginally. Ithaca Energy plc, a UK oil and gas exploration and production company, announced that it has agreed to acquire offshore oil assets in Canada from Suncor with an upfront cash consideration of $860 million. Ithaca could pay up to an additional $250 million in contingent consideration linked to Brent crude oil prices. The transaction is targeted to be completed in the first half of 2027.

In economic news, the S&P Global Canada Composite PMI rose to 48.7 in September from 47.8 in the previous month but remained below the neutral mark for the fourth consecutive month. Service-sector activity continued to contract, albeit at a slower pace, while manufacturing output expanded to a weaker degree.

The S&P Global Canada Services Business Activity Index rose to 48.3 in September from 46.8 in August, remaining below the critical 50.0 no-change mark.