CANADA STOCKS-TSX pares weekly gain as technology shares slide

By Twesha Dikshit and Fergal Smith

Dec 12 (Reuters) - Canada's benchmark stock index gave back some of its weekly gain on Friday as a drop in technology shares offset sharp gains for cannabis stocks.

The S&P/TSX Composite Index .GSPTSE ended down 133.34 points, or 0.4% at 31,527.39, pulling back from a record closing high on Thursday. For the week, the index was up 0.7% as the Federal Reserve cut interest rates further and gold prices climbed.

Wall Street's major indexes posted steeper declines than the Toronto market on Friday as Broadcom and Oracle fueled concerns about an AI-fueled bubble and long-term borrowing costs rose.

"Global stocks are trading at record highs despite ongoing technology valuation doubts," said Bob Savage, head of markets macro strategy at BNY.

"The ongoing themes of equity sector rotation, a better 2026 outlook aided by Fed easing, and tame inflation leave hopes that doing nothing will keep the holiday rally intact."

Canada's consumer price index report for November, due on Monday, is expected to show inflation running at an annual rate of 2.3%. That's up from 2.2% in October but not far off the Bank of Canada's 2% target.

The technology sector .SPTTTK fell 3.4%, with shares of electronics equipment company Celestica Inc CLS.TO ending 12.9% lower.

Heavily weighted financials lost 0.4% and the materials group .GSPTTMT , which includes metal mining shares, was down 0.7%.

Healthcare .GSPTTHC was a standout, jumping 8.9%. Shares of Curaleaf Holdings Inc CURA.TO soared 37.8% after the Washington Post reported U.S. President Donald Trump is expected to push the government to dramatically loosen federal restrictions on marijuana.