Updates at market close

By Fergal Smith

Feb 10 (Reuters) - Canada's main stock index rose on Monday as technology and resource shares notched gains, with investors remaining optimistic on the market's prospects despite the threat of U.S. tariffs on steel and aluminum.

The S&P/TSX composite index .GSPTSE ended up 215.95 points, or 0.85%, at 25,658.86. On January 30, the index posted a record closing high at 25,808.25.

"We're still reasonably bullish on the TSX," said Jay Bala, co-founder and senior portfolio manager at AIP Asset Management.

"We're cautiously optimistic that we're going to end up with a positive year - we're predicting 27,000 for the end of the year. But I think there's going to be a lot of volatility between now and then."

U.S. President Donald Trump said on Sunday that he would impose a 25% tariff increase on all steel and aluminum imports into the U.S. on top of existing duties. Canada is a major supplier of both.

Canadian business and labor leaders met in Toronto on Friday to discuss diversifying trade and boosting the economy in the wake of U.S. tariff threats.

"I think it makes a lot of sense to focus more on Canada and how do we build a better country rather than trying to figure out how do you fight with somebody else," AIP's Bala said.

The energy sector climbed 2.1% as the price of oil CLc1 settled 1.9% higher at $72.32 a barrel.

The materials group, which includes metal mining shares, added 2% as gold XAU= hit a new record high, while technology ended up 1.7%

Toronto-Dominion Bank TD.TO said it would offload its 10.1% stake in U.S. financial services firm Charles Schwab SCHW.N. Its shares rose 3.9%, while shares of MDA Space MDA.TO jumped nearly 13%.

The company said it has expanded its contract with Globalstar GSAT.A to develop the next generation of low Earth orbit satellites.

(Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Sahal Muhammed and Marguerita Choy)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))