CANADA STOCKS-TSX ends near flat for the week as financial shares rally

By Fergal Smith

TORONTO, Sept 25 (Reuters) - Canada's main stock index ended higher on Friday, led by gains for financial shares, as domestic bond yields pulled back from multi-year highs.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended up 94.43 points, or 0.3%, at 35,800.89, a day after posting its lowest closing level in eight days. For the week, the index was barely changed, dipping 0.02%.

• "Rising bond yields are a headwind for the market because it suggests there's expectations of higher interest rates and rate hikes," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

• "So the decline in bond yields is short-term, at least, positive," Cieszynski said. "The headwinds fade a little bit and that's helped the markets pick up today."

• The Canadian 10-year yield eased 7.5 basis points to 3.923%, after touching its highest level since October 2023 at 4.011% during Thursday's session.

• Preliminary domestic data showed that wholesale trade declined 1.5% in August from July.

• Heavily weighted financials .SPTTFS added 1.1%, helped by gains for major banks.

• National Bank of Canada NA.TO announced plans to buy back up to 10 million shares. Its shares ended 1.4% higher.

• Shares of auto parts supplier Magna International MG.TO rose 4.7%, which helped lift consumer discretionary .GSPTTCD by 2.2%.

• Energy .SPTTEN was a drag, falling 0.8%, as U.S. crude oil futures settled 2.3% lower at $92.41 a barrel on mounting hopes for a truce between the US and Iran.

• Technology .SPTTTK was down 1.1%, with BlackBerry BB.TO shares falling 5.7%.