CANADA STOCKS-TSX falls as mining, tech stocks slip

By Utkarsh Hathi

Jan 16 (Reuters) - Canada's main stock index fell on Friday, as the mining sector was dragged down by cooling metal prices and technology shares retreated, though the benchmark was still on track for its second straight week of gains.

The S&P/TSX Composite Index .GSPTSE was down 0.3% at 32,941.12 points as of 10:54 a.m. ET.

The materials index .GSPTTMT, which includes metal miners, dropped 1.7% after gold, silver and copper prices pulled back from record highs.

Endeavour Silver EDR.TO was the biggest loser on the TSX, falling 6.5% after releasing its guidance for 2026.

Information technology .SPTTTK shed 1.9%, with safety tech company Blackline Safety BLN.TO losing 4.3% a day after reporting fourth-quarter results.

Energy shares .SPTTEN helped offset some of the losses, gaining 0.8% on rising oil prices. Crude added nearly 1% as supply risks remained in focus despite the receding likelihood of a U.S. military strike on Iran.

Space technology firm MDA Space MDA.TO was a standout, jumping 13.6% after Morgan Stanley upgraded its stock to "overweight" from "equal-weight".

Energy is set to be the best-performing sector this week, followed by materials, despite the latter's losses on Friday.

Meanwhile, Canada and China struck an initial trade deal to slash tariffs on electric vehicles and canola, with both nations promising to tear down barriers while forging new strategic ties.

"I'm not sure this is going to move markets. Frankly, canola, although a large cash crop, is not really produced by any publicly traded companies," said Brian Madden, chief investment officer at First Avenue Investment Counsel.

"Chinese electric vehicle sales in Canada are probably not going to have a big impact on the stock markets."

Investors also await domestic inflation data for December due on Monday.