* TSX rises 33.91 points to 10,389.76
* Banks get credit for higher close
* TSX ends week with 0.99 percent gain (Adds details, comments and official numbers)
By Frank Pingue
TORONTO, June 26 (Reuters) - Toronto’s main stock index followed its heavyweight financial shares to a higher close on Friday, helped by U.S. data that offered further evidence that recession may be losing its grip on the economy.
The financial sector, which accounts for about a third of the index, rose 1.85 percent to its highest closing level since early November after data showed U.S. consumer spending rose in May for the first time since February. [ID:nSP432665]
“My sense is that it’s a response to the positive U.S. data this morning,” said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.
“The fact that consumers in the States have actually made a very rapid adjustment to this new environment suggests to me that we will see consumers spending at a pretty normal pace.”
The gain in the TSX index would have been much greater if not for the slide in its energy and materials sectors, both of which slid as commodity prices backed off recent highs.
Still, the S&P/TSX composite index .GSPTSE closed 33.91 points, or 0.33 percent, higher at 10,389.76. Seven of its 10 sectors ended higher.
For the week, the index rose 0.99 percent, a big turnaround from early in the week when it was down 5.4 percent after the World Bank said that prospects for the global economy remained “unusually uncertain”. [ID:nSGP000012]
$1=$1.15 Canadian Reporting by Frank Pingue; editing by Peter Galloway