TSX rises on commodity strength, CPI data in focus next week

By Nivedita Balu

(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. [GOL/] [MET/L]

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. [0#BOCWATCH]

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. [.N]

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. [O/R]

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.

(Reporting by Khushi Singh in Bengaluru and Nivedita Balu in Toronto; Editing by Ravi Prakash Kumar and Rod Nickel)