Gold stocks helped Toronto stocks end on a positive note on Friday, after retreating as much as 4 percent during a week that was marred by fears about rising US interest rates.
The Toronto Stock Exchange S&P/TSX composite index closed up 58.18 points, or 0.67 percent, at 8,695.35 on a volume of 220.4 million shares worth C$3.1 billion. On the week, the TSX lost 1.6 percent.
"It's been very quiet today, however a number of things are working well," said Irwin Michael, portfolio manager at ABC Funds, citing stronger commodity prices.
"Perhaps the market overshot on the downside and in consequence, is seeking a new level. So you might be getting a combination of short-covering and various investors feeling we've seen the worst of the recent downtick."
After slumping on worries about higher US rates in the wake of strong US economic reports, the market found solace in mixed data released on Friday.
Strong US housing figures were offset by weak reports on US industrial production and consumer sentiment. In addition, remarks from a top Federal Reserve official eased concerns about an early US interest rate hike.
"The market talked itself into about a quarter-point increase and there was a lot of hand-wringing," said John Ing, president, Maison Placements Canada. "But the economic numbers today made it less pressing.
"Really what's happening is, while the prospects of an increase are being factored into the market, big increases are unlikely in the pre-election period whether the economy is strong or not."
All but one of the TSX's 10 subgroups finished higher, led by the materials sector, which rose 2.06 percent on strength in its component gold and mining stocks.
The gold subgroup gained 1.16 percent as bullion prices rose on weakness in the greenback after the US data.
Barrick Gold rose 40 Canadian cents, or 1.37 percent, to C$29.55 while Iamgold Corp was up 29 Canadian cents, or 3.91 percent, to C$7.70.
The mining subgroup jumped 4.08 percent on stronger commodity prices.
Inco Ltd, the western world's biggest nickel producer, rose C$1.70, or 3.83 percent, to C$46.13.
Fellow nickel miner Falconbridge Ltd gained C$1.29, or 4.04 percent, to C$33.25 after its first-quarter profit topped forecasts.
Industrials contributed to the positive tone, rising 1.6 percent while health-care issues gained 0.93 percent.
The tech sector was alone in negative territory, falling 1.95 percent on glum news from global bellwethers, Nokia and International Business Machines.
Disappointing first-quarter profit from IBM and a warning from Nokia about its second-quarter earnings both weighed on tech stocks.
In Toronto, telecoms gear maker Nortel Networks Corp fell 27 Canadian cents, or 3.57 percent, to C$7.30 while Research In Motion, maker of the BlackBerry communicator, lost C$2.43, or 1.76 percent, to C$135.40.
Overall market momentum was positive with 814 advancers and 453 decliners.
The blue-chip S&P/TSX 60 index was up 2.68 points, or 0.56 percent, to 482.08.
In New York, the Dow Jones industrial average added 54.51 points, or 0.52 percent, to 10,451.97, while the Nasdaq composite index declined 6.43 points, or 0.32 percent, to 1,995.74.