02.03.202621:04:25UTC+00TSX Outperforms on Commodity Producers

Canada’s S&P/TSX Composite Index reversed early losses to close 0.6% higher at 34,441 on Monday, shrugging off a global sell-off earlier in the session. Initial jitters over escalating conflict in the Middle East weighed on sentiment, but the benchmark ultimately found support from strong gains in the energy and industrial sectors.

Cameco was a notable outperformer, jumping 6.5% after securing a $2.6 billion uranium supply agreement with India during Prime Minister Mark Carney’s visit to New Delhi. Major energy producers such as Suncor and Cenovus added more than 2.5% apiece, as oil prices held at elevated levels even after retreating from their intraday peaks.

The financial sector also contributed to the rebound, with Royal Bank of Canada and Toronto-Dominion Bank clawing back earlier declines to close in positive territory. In addition, the manufacturing sector showed renewed strength: the February PMI climbed to 51, its highest reading in 13 months, underscoring a modest expansion.

Gains were partially offset by weakness in select heavyweight names, including Shopify and miners such as Barrick Gold, which ended the session lower. Even so, the TSX was buoyed by a broader “buy the dip” impulse that echoed the sharp late-session recovery seen on Wall Street.