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TSX ends up 0.4% at 25,357.74

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For the week, the index advances 1.3%

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Materials sector rises 2.8% as gold rallies

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Air Canada ( ACDVF ) jumps 14.6% after earnings report

(Updates at market close)

By Fergal Smith

May 9 (Reuters) - Canada's main stock index added to its

weekly gain on Friday, led by energy and metal mining shares, as

hopes that trade tensions could ease offset evidence that

tariff-related uncertainty is already weighing on domestic

activity.

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

ended up 103.68 points, or 0.4%, at 25,357.74, its

highest closing level since February 28. For the week, the index

advanced 1.3, its fifth straight weekly gain.

"The TSX is proving to be quite resilient," said Elvis

Picardo, a portfolio manager at Luft Financial, iA Private

Wealth.

"Investors are still factoring in the best case scenario,

hoping that the trade war blows over and if things get much

worse then the Bank of Canada comes to the rescue with rate

cuts, but I think that might be misguided optimism."

The Canadian unemployment rate rose to 6.9% in April, the

highest level since November, as U.S. tariffs started to hurt

Canada's export-dependent economy.

Investors see a 67% chance that the BoC would resume its

interest rate cutting campaign next month, up from 46% before

the jobs report.

"It's going to take a while for that (trade) uncertainty to

dissipate," Picardo said.

The materials sector, which includes metal mining shares,

rose 2.8% as gold and copper prices climbed.

Oil also rose, settling 3.2% higher at $59.91 a barrel.

Energy added 2%, while real estate was up 0.5% as long-term

borrowing costs fell.

The Canadian 10-year yield eased 4.5 basis

points to 3.159%.

Shares of Air Canada ( ACDVF ) jumped 14.6% after the airline

reported a smaller than expected quarterly loss and said it

would purchase and cancel up to C$500 million ($358.96 million)

in shares by the end of next month.

Telus Corp ( TU ) was another standout. The communications

technology firm's shares rose 7.1% after quarterly results beat

estimates. The technology sector was down 1.5%.

($1 = 1.3929 Canadian dollars)