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TSX ends up 0.4% at 25,254.06

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Posts highest closing level since April 2

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Energy gains 2.8% as oil settles 3.2% higher

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Cenovus jumps 9.1% after earnings beat

(Updates at market close)

By Fergal Smith

May 8 (Reuters) - Canada's main stock index rose to a

five-week high on Thursday, as investors cheered corporate

earnings as well as a limited bilateral trade deal between the

U.S. and Britain that could signal an easing of tariff-related

uncertainty.

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

ended up 92.88 points, or 0.4%, at 25,254.06, its highest

closing level since April 2.

"What's really bolstering investor optimism would be the

announcement of the deal between the U.S. and the U.K," said

Robert Gill, a portfolio manager at Fairbank Investment

Management.

"The key thing is directionally that's positive and it

infers that we might be beginning to move away from all these

tariffs and moving back to a more constructive and globally

integrated economy."

A prolonged trade war could increase the risks to Canadian

financial stability by hurting banks and other institutions and

by making it harder for households and businesses to pay down

debt, the Bank of Canada said.

The energy sector rose 2.8% as the price of oil

settled 3.2% higher at $59.91 a barrel.

Shares in Cenovus Energy Inc ( CVE ) jumped 9.1% after the

oil and gas producer posted a fall in first-quarter profit but

beat Wall Street estimates.

Canadian Natural Resources Ltd ( CNQ ), Canada's largest

oil producer, also reported a better-than-expected first-quarter

profit as well as record production. Its shares climbed 5%.

BCE Inc ( BCEXF ) shares recouped some recent declines,

ending 5.4% higher, after the communications company beat

earnings estimates and slashed its dividend by more than 50%.

"By resetting the dividend they can then prudently address

their capital allocation strategy and also start to attract some

new institutional investors," Gill said.

Technology rose 1.4%, industrials added 1.1% and heavily

weighted financials were up 0.7%.

The materials group, which includes metal mining shares, was

a drag. It lost 1.3% as gold fell.