TSX rises as August factory growth hits 2-year high

Canada's main stock index rose on Tuesday as data showed domestic manufacturing activity in August accelerated to its fastest pace in two years, bolstering hopes of a post-coronavirus economic recovery.

The IHS Markit Canada Manufacturing Purchasing Managers' index (PMI) rose to a seasonally adjusted 55.1 in August, its highest level since the same month two years ago.

At 9:53 a.m. ET (1353 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 16.01 points, or 0.1%, at 16,530.45.

The energy sector climbed 1% as US crude prices were up 1.2% a barrel, while Brent crude added 1.4%.

The financials sector slipped 0.4%, while the industrials sector fell 0.2%.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.2% as gold futures rose 0.7% to $1,982.1 an ounce.

On the TSX, 96 issues were higher, while 123 issues declined for a 1.28-to-1 ratio to the downside, with 40.07 million shares traded.

The largest percentage gainers on the TSX was the oil producer Whitecap Resources Inc, which jumped 4.7% after multiple brokerages hiked the price target of the stock.

Its gains were followed by Crescent Point Energy Corp , which rose 3.5% after the oil producer said it expects to generate nearly $125 million of excess cash flow in the second half of 2020.

The pot producer Aurora Cannabis Inc fell 4%, the most on the TSX and the second-biggest decliner was Ballard Power Systems Inc, down 3.1%.

The most heavily traded shares by volume were Suncor Energy Inc, and Northern Dynasty Minerals Ltd.

The TSX posted four new 52-week highs and no new lows.

Across all Canadian issues there were 28 new 52-week highs and three new lows, with total volume of 52.98 million shares.