(Adds portfolio manager comment, details on financial stocks,
updates prices)
* TSX closes up 19.36 points, or 0.14 percent, at 13,901.77
* Four of the TSX's 10 main groups end higher
* Index loses 1 percent for the week
By Fergal Smith
TORONTO, June 17 (Reuters) - Canada's main stock index edged
higher on Friday as commodities rallied and global worries about
Britain voting to leave the European Union next week abated.
Still, the index fell 1 percent for the week and has pulled
back 3.8 percent from a recent 10-month peak as markets became
jittery ahead of Britain's referendum.
Reasonable earnings, economic recovery and low interest
rates are supportive of stocks, but lack of clarity about the
outcome of the referendum and related volatility may restrain
investors near-term, said Irwin Michael, portfolio manager at
ABC Funds.
"People don't want to hold anything that could have some
speculation or risk to it," he said.
Canada's currency will weaken and the chances its central
bank cuts interest rates would jump if Britain votes next week
to leave the European Union, strategists warn, noting the result
could hit global growth and spell bad news for
commodity-exporting countries.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 19.36 points, or 0.14 percent, at 13,901.77.
But just four of the index's 10 main groups ended higher.
The most influential sector by far was energy, which rallied
1.4 percent. It was led by a 1.6 percent advance in the shares
of Canadian Natural Resources CNQ.TO to C$37.79, while Suncor
Energy Inc SU.TO climbed 0.9 percent to C$34.34.
Suncor has launched an auction of its Petro-Canada
lubricants division, people familiar with the matter said.
Oil prices rose for the first time in a week as the dollar
fell and investors in global markets cautiously bought some
riskier assets. U.S. crude oil futures CLc1 settled up $1.77
at $47.98 a barrel. O/R
The materials group, which includes precious and base metals
miners and fertilizer companies, added 0.1 percent, while spot
gold XAU= advanced 1.6 percent.
Saskatchewan is considering whether to end a review of its
potash royalty system, the economy minister of the Canadian
province said.
Potash Corp of Saskatchewan POT.TO rose 1.7 percent to
C$21.82.
The financials group ended little changed. Fairfax Financial
Holdings Ltd FFH.TO fell 1.1 percent to C$643.08. But
Brookfield Asset Management Inc BAMa.TO advanced 2.8 percent
to C$44.10.
Royal Bank of Canada RY.TO firmed 0.4 percent to C$77.60.
Canada's largest bank by market capitalization plans further
expansion in the United States following its $5 billion
acquisition of Los Angeles-based City National in November,
Chief Executive Dave McKay said.
Canada's annual inflation rate cooled in May on cheaper
gasoline and a slowdown in price increases for food.
ECONCA