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TSX up 0.7%

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CPI data on radar next week

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Tilray Brands drops to bottom of TSX

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Materials index leads sectoral gains

(Updates to close)

By Nivedita Balu

May 17 (Reuters) - Canada's main stock index rose on

Friday to close the week on a high note while hovering near

record highs, powered by surging commodity prices as investors

await inflation data next week.

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

was up 165.54 points, or 0.74%, at 22,465.37.

Silver prices jumped to an 11-year high, copper prices hit a

25-month peak and strength in most metals helped the materials

sector, which includes precious and base metals

miners and fertilizer companies, lead sector gains with a 2.8%

jump.

Next week, investors will gauge Canada's April inflation

data on Tuesday for fresh insights into the Bank of Canada's

rate-cut timeline.

"No doubt a very good week for the bulls... the momentum is

positive," said Angelo Kourkafas, senior investment strategist

at Edward Jones.

"There is still some uncertainty. Investors will be

laser-focused on inflation trends to gauge what central banks

will do. That's going to be the case in Canada next week."

Investors anticipate the BoC to begin rate cuts as early as

June or July, compared to the U.S. Federal Reserve's first cut

expected in September.

In the United States, the Dow Jones Industrial Average

breached the 40,000-point level for the first time ever

on Thursday on rising bets of interest-rate cuts by the Federal

Reserve. U.S. stocks ended mixed on Friday as investors digested

the rally this week.

In Canada, the energy sector posted a 1.2% gain,

as economic indicators from big consumers China and the United

States bolstered hopes for higher oil demand.

Shares in Tilray Brands dropped 7.2% to the bottom

of the TSX after the cannabis-lifestyle company announced that

it may offer and sell shares of common stock having an aggregate

offering price of up to $250 million.

The broader healthcare index was off 1.6%,

leading sectoral losses.