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TSX ends down 0.5% at 22,265.05

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Industrials decline 2.1%

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Financials were down 1.1%

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Scotiabank falls 0.8% despite earnings beat

(Updates at market close)

By Fergal Smith

May 28 (Reuters) - Canada's main stock index fell on

Tuesday, including declines for industrial and financial shares,

as worries that interest rates would stay elevated for longer

than previously thought prompted investors to pocket some of

this month's gains.

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

ended down 108.33 points, or 0.5%, at 22,265.05. Since

the start of May, the index has advanced 2.5%.

"It does feel like the market is starting to give back some

of that big gain that we had throughout the month of May," said

Greg Taylor, a portfolio manager at Purpose Investments. "We are

starting to get more concern that the Fed is not going to cut

anywhere close to the extent that they had (projected)."

Wall Street's major indexes were mixed as investors awaited

U.S. inflation data this week that could sway expectations for

Federal Reserve rate cuts and as U.S. trading moved to a shorter

settlement cycle of one day for securities transactions. Canada

transitioned on Monday.

The Toronto market's industrials sector fell 2.1%

as railroad stocks lost ground, while heavily weighed financials

ended 1.1% lower.

Bank of Nova Scotia ( BNS ) reported better-than-expected

quarterly earnings, boosted by gains in its capital market

business, rises in brokerage revenue in Canada and mutual fund

fees overseas. Still, its shares were down 0.8%.

Energy shares were a bright spot, rising 1.4%, as

the price of oil settled 2.7% higher at $79.83 a barrel

on the expectation that OPEC+ will maintain crude supply curbs

at its June 2 meeting.

The materials group, which includes metal miners

and fertilizer companies, also rose. It was up 0.9% as gold and

copper prices climbed.