* TSX ends down 0.2% at 21,942.28

* Industrials fall 1.4%

* Energy gains 2%; oil settles up 1.6%

* Manulife adds 1% after reinsurance deal

March 25 (Reuters) - Canada's main stock index ended lower on Monday, pressured by losses for industrial shares, but the move was limited as recent strength in corporate earnings and the prospect of interest rate cuts helped underpin investor sentiment.

The Toronto Stock Exchange's S&P/TSX composite index ended down 41.8 points, or 0.2%, at 21,942.28. The index was consolidating some recent gains for a second day after posting on Thursday a record closing high.

"I've not seen sentiment turn so positive in a long period of time," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth.

"You've got a situation where interest rates look quite likely to come down in the second half of the year. Inflation pressures are abating, corporate earnings are still holding up quite strongly ... it's a really good environment for equities."

The Federal Reserve last week eased investor jitters by keeping borrowing costs unchanged and reinforcing expectations that rates could be cut by three-quarters of a percentage point by the end of 2024.

For the Toronto market to continue to hit new highs it needs to see greater participation from some of the heavily-weighted sectors such as resources, Picardo said.

The energy sector, which accounts for 20% of the TSX's weighting, added 2% as the price of oil settled up 1.6% at $81.95 a barrel after orders from the Russian government to curb oil output.

But most other sectors ended lower, with industrials falling 1.3% and consumer discretionary down 1%.

Manulife Financial Corp signed a reinsurance deal with RGA Life Reinsurance Company of Canada as it looks to de-risk its business and improve shareholder returns. Manulife's shares were up 1%. (Reporting by Fergal Smith in Toronto and Johann M Cherian in Bengaluru; Editing by Tasim Zahid and Deepa Babington)