Toronto market pares weekly decline as industrials climb

FILE PHOTO: The facade of the original Toronto Stock Exchange building is seen in Toronto

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Friday, helped by gains for the financial and industrial sectors, as investors grew hopeful that the market's recent rally could be sustained.

The Toronto Stock Exchange's S&P/TSX composite index ended up 96.33 points, or 0.5%, at 19,980.91.

For the week, it was down 0.6%. Still, it has rallied 11.8% since hitting in October its lowest intraday level in 20 months.

"I continue to believe the market has bottomed," said Steve Palmer, chief investment officer at AlphaNorth Asset Management.

"Markets don't bottom when all the world's problems are solved ... they bottom when investor sentiment is at an extreme."

Investors have worried that soaring inflation globally and the rapid pace of central bank interest rate hikes could tip some major economies into recession.

U.S. benchmark index the S&P 500 also ended higher on Friday as gains in defensive shares overshadowed energy declines.

The Toronto market's energy sector ended 0.2% lower as oil extended recent declines, falling 1.9%, due to concern about weakened demand in China.

But industrials, were a bright spot, rising 1.1% as railroad stocks climbed. Heavily-weighted financials also gained ground, ending up 0.5%.

Among individual names, Turquoise Hill Resources Ltd rose 1.5% after Rio Tinto Ltd said it would plough ahead with a $3.3 billion bid to buy the 49% of Turquoise it does not already own.

(Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; editing by Grant McCool)