*

TSX ends up 0.1% at 21,656.05

*

Materials, tech stocks lead gains

*

CIBC raises PT on goeasy; shares climb

*

Industrials fall 0.7%

(Updates at market close)

By Purvi Agarwal and Fergal Smith

April 17 (Reuters) - Canada's main stock index ended

higher on Wednesday as mining stocks rallied and investors

looked ahead to quarterly earnings reports, but gains for the

index were held in check after the federal budget proposed

raising a tax on investment profits.

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

ended up 13.18 points, or 0.1%, at 21,656.05, after

five straight days of declines.

"There is some dip buying going on at the margins," said

Elvis Picardo, a portfolio manager at Luft Financial, iA Private

Wealth. "Mining stocks, we've seen the rebound after being sold

off yesterday."

The materials group, which includes metal miners

and fertilizer companies, was up 0.8% as copper prices

climbed.

"The big question is whether Q1 earnings will be strong

enough to provide the impetus for the markets to grind higher,"

Picardo said.

Technology was another bright spot, rising 0.6%,

and heavily weighted financials added 0.1%. It was

helped by a gain of 6.3% for the shares of goeasy Ltd

after CIBC raised its price target on the lender to C$200 from

C$175.

Canada's budget on Tuesday proposed raising the share of

capital gains that is subject to taxation for wealthy

individuals as well as for companies and trusts. The measure

would come into effect on June 25.

"There might be some selling on stocks that people have big

gains in before the tax rate goes up. It could have an impact on

the market", said Greg Taylor, a portfolio manager at Purpose

Investments.

Among the sectors that declined was industrials.

It lost 0.7% and energy was down 0.3% as oil

settled 3.3% lower at $82.69 a barrel.