TORONTO - Canada's main stock index posted a second day of gains Friday to end the week higher while U.S. markets were mixed.

The S&P/TSX composite index closed up 56.79 points at 14,222.00 to register a 286.56-point gain in a shortened holiday week marked by volatility.

The gains came after several weeks of losses that had likely gone too far, said Cavan Yie, a portfolio manager at Manulife Asset Management.

“Today you're seeing sectors that have been oversold over the last several weeks bouncing back. So in the Canadian market I'm seeing industrials and energy finally leading the strength. And obviously these are two sectors that have suffered a great deal over the last several weeks.”

The S&P/TSX capped energy index climbed 3.16 per cent on the day, which followed on a 5.57 per cent gain a day earlier.

The energy sector has moved up faster than the price of oil, with the February crude contract climbing 72 cents to US$45.33 per barrel Friday, but Yie said he expects oil to climb further.

“Producers can't make a return at these levels, most aren't free cash-flow positive at these levels. So our view is that supply has to come down with oil below 50 and should translate into a more normalized supply-demand environment, which could take some time.”

The healthcare index was the only one to top energy after Aphria Inc. shares climbed more than 12 per cent on news of a hostile all-stock takeover bid from U.S.-based Green Growth Brands.

In New York, the Dow Jones industrial average closed down 76.42 points at 23,062.40. The S&P 500 index ended down 3.09 points at 2,485.74, while the Nasdaq composite was up 5.03 points at 6,584.52.

Markets were somewhat subdued Friday, but have been hit in recent weeks by an uncertain interest rate outlook, China-U.S. trade relations, and the possibility of a cyclical peak, said Yie.

“All three factors have contributed to the last month's market correction,” he said.

The Canadian dollar averaged 73.32 cents US, up 0.01 of a US cent from Thursday.

The February natural gas contract closed down 24 cents at US$3.30 per mmBTU. The February gold contract closed up $1.90 at US$1,283, and the March copper contract ended up a penny at US$2.68 per pound.