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TSX ends up 0.2% at 21,708.44

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Mining shares lead gains as gold and copper rise

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Utilities sector adds 1.1%, financials gain 0.3%

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Energy falls 0.5% as oil holds near three-week low

(Updates at market close)

By Purvi Agarwal and Fergal Smith

April 18 (Reuters) - Canada's main stock index ended

higher on Thursday as higher metal prices boosted the materials

sector, but the market's gains were held in check as investors

worried that interest rate cuts could be delayed.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 52.39 points, or 0.2%, at 21,708.44, while

the S&P 500 closed lower for a fifth straight session.

The decline for the U.S. benchmark stock index came as

economic data and comments from Federal Reserve officials

suggested the central bank was unlikely to cut interest rates in

the near future.

"It is continuing to look like a higher rates for longer

situation and it might not be until next year that we start to

see rates come down," said Graham Priest, investment advisor at

BlueShore Financial.

The TSX snapped its own recent losing streak on Wednesday

but gains were capped by the Canadian government's planned tax

increase on investment profits.

Canada's plan to raise taxes on the savings of wealthy

people and corporations is likely to hold back investment,

potentially adding to the productivity malaise that has held

back economic growth in recent years, say economists.

The materials sector, which includes metal miners

and fertilizer companies, climbed 1.2% as gold and copper

prices rose, with shares of First Quantum Minerals Ltd ( FQVLF )

ending 8.9% higher.

The utilities group was another bright spot,

adding 1.1%, and heavily-weighted financials were up

0.3%.

Energy was a drag, falling 0.5%, as the price of

oil held near its lowest level in three weeks. U.S. crude oil

futures settled 4 cents higher at $82.73 a barrel.