By Fergal Smith
TORONTO (Reuters) - Canada's main stock index edged higher on Monday, led by gains for energy and technology, as investors weighed which sectors of the market could fare best as growth potentially peaks for the current economic cycle.
The Toronto Stock Exchange's S&P/TSX composite index ended up 28.36 points, or 0.1%, at 20,819.09, after giving back much of its earlier advance.
U.S. stocks also ended slightly higher with gains in mega-cap growth shares offset by persistent worries over inflation.
Equities globally have taken a hit this year from surging inflation and tighter monetary policy, but the TSX index has fared better than some major peers thanks to its heavy exposure to commodity-linked sectors.
"The way we view the current cycle for the TSX index in particular is that it is very tied to a late-cycle narrative for equity markets in general," said Sid Mokhtari, a market technician at CIBC World Markets.
"Having energy as well as some of these oversold (technology) names that we have on TSX should be able to keep an underlying bid to the index," added Mokhtari.
The energy group ended 0.8% higher as oil touched its highest in more than three months at $120.99 a barrel before settling 0.3% lower at $118.50.
Technology, which has fallen by more than one-third since the start of the year, climbed 1.1%, while consumer discretionary shares ended 0.9% higher.
(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Lisa Shumaker)