The Toronto Stock Exchange's S&P/TSX composite index ended up 20.81 points, or 0.1%, at 20,437.12. Last week the index rose 1.3%, snapping a four-week losing steak.
It has gained around 17.2% so far this year.
"The two main forces driving it" are oil prices and bond yields, said Robert McWhirter, a portfolio manager at Selective Asset Management Inc.
The price of oil settled 0.2% higher at $80.64 a barrel after touching on Monday a seven-year high at $82.18.
Higher oil prices have helped underpin energy stocks in recent weeks, while banks could earn higher margins on their loans after long-term interest rates climbed.
Canada's 5-year yield was up 3.7 basis points at 1.251%, after touching its highest level since February 2020 at 1.335%.
The energy sector climbed to its highest intraday level since May 2019 before closing 0.1% lower. Financials also gave back some recent gains, dipping 0.3%, but the materials group, which includes precious and base metals miners and fertilizer companies, added 1.5%.
Shares of uranium producer Cameco Corp jumped 14.7% after Scotiabank raised its target price on the stock.
Denison Mines Corp climbed 19.4%, while Lithium Americas Corp ended 17.7% higher.
(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Jonathan Oatis)
By Fergal Smith
