CANADA STOCKS-TSX notches record high as soaring oil prices lift energy shares

(Updates at market close)

* TSX ends up 0.6% at 34,541.27

* Energy sector adds 1.8% as oil settles 6.3% higher

* Cameco (CCJ) rises 6.5% after uranium supply deal with India

* Factory PMI rises to highest level since January 2025

By Fergal Smith

March 2 (Reuters) - Canada's energy-linked main stock index rose to a record high on Monday, led by energy shares as oil prices rose following the weekend's attacks on Iran by the U.S. and Israel.

Stocks were also helped by upbeat domestic manufacturing-sector data.

The S&P/TSX composite index rose 201.28 points, or 0.6%, at 34,541.27, surpassing the record close posted on Thursday.

Oil and gas prices surged, the U.S. dollar gained and some major stock indexes around the world fell as the U.S.-Israeli air war against Iran widened and looked set to last for weeks, threatening to upend global economic growth and perhaps reignite inflation.

The energy sector, which has a roughly 18% weighting on the TSX, gained 1.8% to reach its highest level since September 2008.

"When we see the markets react to something like Iran, it's not always a bad thing for Canadian investors because our market is so leveraged to oil," said Philip Petursson, chief investment strategist at IG Wealth Management.

U.S. crude oil futures settled 6.3% higher at $71.23 a barrel.

Financials, the TSX's most heavily weighted sector, added 0.5% and industrials were up 1.2%. The S&P Global Canada Manufacturing Purchasing Managers' Index, a measure of factory-sector health, rose to 51.0 in February from 50.4 in January, posting its highest level since January 2025.

Five of the 10 major sectors ended lower, including technology, which lost 0.7%. The materials group , which includes metal mining shares, was down 0.2% as copper prices fell. The Indian government and Cameco (CCJ) signed a uranium supply agreement to support India's nuclear ambitions and to work towards clean, reliable base load power, Canadian Prime Minister Mark Carney said. Shares of Cameco (CCJ) gained 6.5%. (Reporting by Fergal Smith, Nivedita Balu and Utkarsh Tushar Hathi; Editing by Shilpi Majumdar and Jonathan Ananda)