Toronto market rally fizzles as Shopify tumbles

TORONTO (Reuters) - Canada's main stock index edged higher on Tuesday as energy and financial stocks climbed, but the index gave back much of its earlier advance as the shares of technology heavyweight Shopify Inc fell by the most in more than a year.

The Toronto Stock Exchange's S&P/TSX composite index ended up 13.68 points, or 0.06%, at 21,236.52, on its first day of trading in 2022.

The benchmark index gained 22% in 2021, its best yearly performance since 2009, supported by massive stimulus, vaccine rollouts and hopes of global economic recovery.

Domestic data on Tuesday showed that Canadian manufacturing activity expanded in December but the pace was the slowest in five months as material shortages and delivery delays held back output.

The energy sector climbed 3.7% as an agreement by OPEC+ to stick with its planned increase for February bolstered oil prices. U.S. crude oil futures settled 1.2% higher at $76.99 a barrel.

Financials rose 1.8%, while healthcare added 2.4% as the shares of cannabis producers rallied.

Among the sectors losing ground was technology. It ended down 3.3% along with declines for U.S. technology shares.

Shopify, which has the largest market capitalization on the Toronto market, tumbled 10.9%, its biggest decline since November 2020.

Meanwhile, BlackBerry Ltd is pulling the plug on service for its once ubiquitous business smartphones, which were toted by executives, politicians and legions of fans in the early 2000s. The company's stock ended 0.4% higher.

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Marguerita Choy)