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TSX ends up 0.4% at 25,281.63

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Posts highest closing level since Dec. 12

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Technology sector gains 1.6%

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Canada's annual inflation rate slows to 1.8%

By Fergal Smith

Jan 21 (Reuters) - Canada's main index rose for a sixth

straight day on Tuesday, led by technology shares, as the

potential benefit of a business friendly U.S. government offset

the economic uncertainty of trade tariffs that are expected in

the coming days.

The Toronto Stock Exchange's S&P/TSX Composite Index

ended up 110.05 points, or 0.4%, at 25,281.63, its

highest closing level since Dec. 12. The daily winning streak

was the longest since August.

Corporate profits could get a lift from tax cuts and looser

regulation proposed by U.S. President Donald Trump. Trump has

also proposed sweeping trade tariffs, which could include a 25%

tax on imports from Canada beginning on Feb. 1.

"You're balancing the fear of the Trump tariffs against the

major short-term positive effect of the Trump presidency," said

Matt Skipp, president of SW8 Asset Management.

"If it hurts our economy it hurts our stock market to some

extent but the actual direct impact of the tariffs (on the TSX)

might be less than people think even if they come," Skipp added.

U.S. operations are a major contributor to Canadian bank

earnings, while energy and material companies benefit from a

weaker Canadian dollar.

Combined, the financial and resource sectors account for 62%

of the TTS's weighting, while another block is made up of

sectors such as telecommunication and real estate that don't

rely on exports.

The technology sector rose 1.6%, with shares of e-commerce

company Shoplift Inc up 1.9%. Financials added 0.8%

and the interest-rate sensitive utilities sector ended 0.4%

higher.

Canadian inflation slowed to a 1.8% annual rate in December,

supporting bets for another rate cut by the Bank of Canada.

Energy was a drag, falling 1.3%, as the price of oil

settled 2.6% lower.

Shares of business jet maker Bombardier were down

5.3%, giving back much of Monday's gains.