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TSX ends up 0.89% at 22,269.12

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Industrials group climbs 1.55%

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Investors see 80% chance of BoC rate cut next week

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Laurentian Bank shares fall after quarterly loss

(Updates at market close)

By Fergal Smith

May 31 (Reuters) - Canada's main stock index ended

higher on Friday, adding to its monthly gain, as domestic

economic data boosted prospects of the Bank of Canada beginning

interest rate cuts and investors rotated into more defensive

areas of the market.

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

ended up 197.41 points, or 0.89%, at 22,269.12.

For the month of May, the TSX was up 2.55%. It posted a

record closing high of 22,468.16 on May 21.

"I wouldn't be surprised to see more consolidation just

given the magnitude of the strength that we've seen across many

sectors and many areas," said Sid Mokhtari, chief market

technician for CIBC Capital Markets.

"We are seeing some rotation out of technology ... We're

seeing some of it being pulled back into industrials, some of

the staples, areas where they can be perceived as defensive."

The industrials group added 1.55% and consumer

staples ended 0.89% higher. Energy was up

1.21% even as the price of oil settled 1.2% lower at

$76.99 a barrel ahead of an OPEC+ meeting on Sunday.

Money markets are pricing in an 80% chance that the BoC

begins an easing campaign at a policy announcement next

Wednesday after data showed the Canadian economy expanding at a

slower-than-expected annualized pace of 1.7% in the first

quarter.

Canadian banks are bracing for a few months of uncertainty

with loan loss provisions expected to rise if interest rates

remain elevated, according to executives from major lenders.

Laurentian Bank of Canada ( LRCDF ) reported a loss for the

second quarter, sending its shares down 6.52%.

The materials group, which includes metal miners

and fertilizer companies, ended 0.58% lower as gold and

copper prices fell.

Investment industry participants in Canada have successfully

transitioned to a shorter securities settlement standard, the

Canadian Capital Markets Association said in a statement.