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TSX ends down 0.2% at 21,942.28

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Industrials fall 1.4%

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Energy gains 2%; oil settles up 1.6%

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Manulife adds 1% after reinsurance deal

(Updates at market close)

By Fergal Smith

March 25 (Reuters) - Canada's main stock index ended

lower on Monday, pressured by losses for industrial shares, but

the move was limited as recent strength in corporate earnings

and the prospect of interest rate cuts helped underpin investor

sentiment.

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

ended down 41.8 points, or 0.2%, at 21,942.28. The

index was consolidating some recent gains for a second day after

posting on Thursday a record closing high.

"I've not seen sentiment turn so positive in a long period

of time," said Elvis Picardo, a portfolio manager at Luft

Financial, iA Private Wealth.

"You've got a situation where interest rates look quite

likely to come down in the second half of the year. Inflation

pressures are abating, corporate earnings are still holding up

quite strongly ... it's a really good environment for equities."

The Federal Reserve last week eased investor jitters by

keeping borrowing costs unchanged and reinforcing expectations

that rates could be cut by three-quarters of a percentage point

by the end of 2024.

For the Toronto market to continue to hit new highs it needs

to see greater participation from some of the heavily-weighted

sectors such as resources, Picardo said.

The energy sector, which accounts for 20% of the TSX's

weighting, added 2% as the price of oil settled up 1.6%

at $81.95 a barrel after orders from the Russian government to

curb oil output.

But most other sectors ended lower, with industrials falling

1.3% and consumer discretionary down 1%.

Manulife Financial Corp ( MFC ) signed a reinsurance deal

with RGA Life Reinsurance Company of Canada as it looks to

de-risk its business and improve shareholder returns. Manulife's

shares were up 1%.