*

TSX ends up 0.2% at 21,769.22

*

Materials group adds 0.8%

*

Silvercrest Metals ( SILV ) jumps 10.2%

*

Technology loses 0.5%

(Updates at market close)

By Fergal Smith

March 11 (Reuters) - Canada's main stock index rose on

Monday, benefiting from a broadening of the recent rally to

include stocks considered cheap compared to their fundamental

valuations, although gains were restrained ahead of a key U.S.

inflation report.

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

ended up 31.69 points, or 0.2%, at 21,769.22 but

stopping short of the near two-year high it notched on Thursday

at 21,794.56.

"That broader uptrade persists but today we are seeing some

indecision ahead of the U.S. CPI report," said Angelo Kourkafas,

senior investment strategist at Edward Jones.

The U.S. consumer price index report for February, due on

Tuesday, could help guide expectations for the start of Federal

Reserve interest rate cuts.

"One of the most important developments in the last couple

of days has been this rotation across different styles and

sectors ... moving money out of tech into areas like value style

investments," Kourkafas said.

The TSX has a heavy concentration of value stocks, including

companies in the financial, industrial and material sectors,

that tend to trade at a cheaper price than their expected cash

flows would suggest.

The materials index, which includes precious and base metals

miners and fertilizer companies, rose 0.8% as gold continued its

record-setting rally. It was led by a gain of 10.2% for

Silvercrest Metals Inc ( SILV ) after the non-gold precious

metals miner announced its fourth-quarter results.

Financials also gained ground, rising 0.3%, and energy was

up 0.2% despite the price of oil settling 0.1% lower at $77.93 a

barrel.

Technology was a drag, falling 0.5%. Still, the sector is up

6% since the start of the year.