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TSX up 0.5%, on track for weekly gains

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Comm services lead broader gains

(Updates at market open)

By Ragini Mathur

Jan 3 (Reuters) - Canada's main stock index rose on

Friday and was on course to end the holiday-shortened week on a

positive note, while investors awaited more data for insights on

the health of the economy.

The S&P/TSX composite index rose 133.26 points or

0.54% to 25031.29, on track for a second weekly gain and

recovering from December declines.

All 11 sectors were trading higher, with capped

communication services in the lead with a 1.05% rise.

The heavily weighted energy sector rose 0.40% as

oil prices, steadied at their highest level in

more than two months, touched in the previous session.

"In (the) absence of any market-moving news, Canadian

manufacturing PMI might be giving investors (a) slightly more

positive outlook on the Canadian economy," said Josh Sheluk,

portfolio manager at Verecan Capital Management.

S&P Global's Manufacturing Purchasing Managers' Index showed

on Thursday the Canadian manufacturing activity grew at its

fastest pace in nearly two years in December.

Across the border, U.S. manufacturing moved closer to

recovery in December, the Institute for Supply Management's PMI

showed on the day.

"We continue to look at leading economic indicators to give

us a better idea of what's going to happen... these indicators

were quite weak throughout the middle of 2024, but rebounded

towards the end of 2024, especially in the US," added Sheluk

Investors await monthly employment data from Canada and the

U.S. next week for insights into the monetary policy direction

in both economies.

The TSX gained nearly 18% in 2024, its biggest yearly

advance since 2021. However, it ended December 3.6% lower after

a hawkish shift by the Federal Reserve led to expectations of

higher long-term U.S. borrowing costs.

Among stocks, Algoma Steel ( ASTL ) slipped 6.5% in today's

session to the bottom of the TSX after its quarterly outlook.