Linamar Leads TSX Slightly Higher -- Canadian Commentary

(RTTNews) - Canadian stocks inched higher Friday, trimming significant losses from the previous session. Stocks failed to sustain a pronounced rally at the opening hour, however.

The TSX Composite Index was up 25.52 points to 16,041.98, crawling back toward recent record highs.

Linamar Corp. (LNR.TO) has reached an agreement to buy Canadian agriculture equipment maker MacDon Industries Ltd. for $1.2 billion. Shares surged 11.50 percent.

Capstone Mining Corp. (CS.TO) has completed the sale of its Kutcho development project to Kutcho Copper Corp for C$28.8 million. Shares rose 1.4 percent.

Former Canadian Rail boss Hunter Harrison is taking a medical leave from CSX for an unspecified illness.

In economic news, Canadian manufacturing sales declined 0.4% to $53.5 billion in October, following two consecutive monthly increases.

Still, "We are at a point in the economic cycle that I think of as the "sweet spot," Bank of Canada head Mark Poloz said in Toronto.

"We know that a majority of Canadian companies are running flat out....with the economy now running close to full output and inflation expected to be around 2 per cent later in 2018."

Sales of motor vehicles and other transportation equipment accounted for most of the decline in October.