CANADA STOCKS-TSX posts weekly decline as profit taking offsets jobs gain

By Fergal Smith

Dec 5 (Reuters) - Canada's main stock index pulled back on Friday from a record high as investors took stock of recent gains, but the move was limited as domestic jobs data fueled optimism about the economy.

The S&P/TSX Composite index .GSPTSE ended down 166.16 points, or 0.5%, at 31,311.41, after posting a record closing high on Thursday. For the week, the index lost 0.2% as a dip in gold prices offset stronger-than-expected bank earnings.

"I think the overarching theme is still positivity but we have some consolidation that's going on into the end of the year ... with some lightening up where profits have been made, getting ready for what we're seeing in 2026," said Philip Petursson, chief investment strategist at IG Wealth Management.

"The big thing is that the Canadian economy is in better shape than what people thought just, say, a month or two ago.

Canada's unemployment rate once again defied expectations and fell to a 16-month low in November as the economy added 53,600 jobs, marking the third-straight month of robust job gains. Analysts had forecast a decrease of 5,000 jobs.

"The data cements expectations that the Bank of Canada will remain on hold next week and likely is done with its easing cycle," said Angelo Kourkafas, senior global investment strategist at Edward Jones.

Investors expect the BoC to leave its benchmark interest rate unchanged at a three-year low of 2.25% next Wednesday and have begun to bet on a move to interest rate hikes in 2026. 0#CADIRPR

The materials group, which includes metal mining shares, fell 1.1%, with shares of Orla Mining OLA.TO down 11.1%. Fairfax Financial Holdings FFH.TO said it had sold 25 million shares of the miner.

Technology was down 0.8%, weighed by a 1.7% decline for the shares of e-commerce company Shopify Inc SHOP.TO.

Industrials also ended 0.8% lower as railroad shares lost ground.