CANADA STOCKS-TSX set for first weekly loss in four amid uncertainty over Iran talks

By Purvi Agarwal

April 24 (Reuters) - Canada's main stock index inched lower on Friday and was set for a weekly decline, as heavyweight energy stocks fell amid uncertain prospects of a resumption of U.S.-Iran negotiations.

At 10:01 a.m. ET (1401 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.3% at 33,826.92.

The index is set for its first weekly decline in four, as little progress on the prospects of peace in the Middle East
dampened investor sentiment.

Iran's foreign minister Abbas Araqchi was expected in Islamabad on Friday, although there was no indication that negotiations would immediately resume.

Oil prices fell following the news of the expected visit, but held above $100 a barrel. The TSX energy sector .SPTTEN fell 1.3%, after four sessions of gains.

Miners .GSPTTMT gained 0.1%, tracking gold and silver prices. But a decline in copper prices kept a lid on the advance.

Six out of the 11 TSX sectors were flat-to-lower. Healthcare stocks .GSPTTHC were the biggest percentage gainers, up 2%.

Angelo Kourkafas, senior global investment strategist at Edward Jones, said that sensitivity of the TSX to oil prices had reduced as investors expected corporate profits to rise and since the economy appeared to be resilient.

A majority of economists polled by Reuters expect the Bank of Canada to remain on hold through the year , in contrast to LSEG data that shows markets pricing in a rate hike by end-2026.

The BoC might have to reassess its plans to hold if high energy prices persist into the second and third quarters, Kourkafas said.

Canadian retail sales rose 0.7% in February, slightly below estimates of 0.9%, according to economists polled by Reuters.

Among stocks, Sun Life Financial SLF.TO gained 1.7% after the National Bank of Canada upgraded the stock to "outperform."