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TSX ends up 0.85% at 25,658.86

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Energy gains 2.1%; oil settles up 1.9%

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Materials rises 2% as gold hits record high

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MDA Space ( MDALF ) jumps nearly 13%

(Updates at market close)

By Fergal Smith

Feb 10 (Reuters) - Canada's main stock index rose on

Monday as technology and resource shares notched gains, with

investors remaining optimistic on the market's prospects despite

the threat of U.S. tariffs on steel and aluminum.

The S&P/TSX composite index ended up 215.95

points, or 0.85%, at 25,658.86. On January 30, the index posted

a record closing high at 25,808.25.

"We're still reasonably bullish on the TSX," said Jay Bala,

co-founder and senior portfolio manager at AIP Asset Management.

"We're cautiously optimistic that we're going to end up with

a positive year - we're predicting 27,000 for the end of the

year. But I think there's going to be a lot of volatility

between now and then."

U.S. President Donald Trump said on Sunday that he would

impose a 25% tariff increase on all steel and aluminum imports

into the U.S. on top of existing duties. Canada is a major

supplier of both.

Canadian business and labor leaders met in Toronto on Friday

to discuss diversifying trade and boosting the economy in the

wake of U.S. tariff threats.

"I think it makes a lot of sense to focus more on Canada and

how do we build a better country rather than trying to figure

out how do you fight with somebody else," AIP's Bala said.

The energy sector climbed 2.1% as the price of oil

settled 1.9% higher at $72.32 a barrel.

The materials group, which includes metal mining shares,

added 2% as gold hit a new record high, while technology

ended up 1.7%

Toronto-Dominion Bank ( MLWIQXX ) said it would offload its

10.1% stake in U.S. financial services firm Charles Schwab

SCHW.N. Its shares rose 3.9%, while shares of MDA Space ( MDALF )

jumped nearly 13%.

The company said it has expanded its contract with

Globalstar ( GSAT ) to develop the next generation of low Earth

orbit satellites.