The Toronto Stock Exchange recovered from early-day losses to finish with modest gains on Friday, boosted by strong performance in bank stocks.

The S&P/TSX composite index gained 33.91 points, or 0.3%, to close at 10,389.76. For the week, the benchmark index gained 1%.

The financials group gained 1.9% on Friday.

Shares of Toronto-Dominion Bank soared $1.92, or 3.3%, to $60.57 and Royal Bank of Canada added 2.2% to $47.54.

Also higher was Bank of Nova Scotia, up $1.19, or 2.9%, to $43.00.

Lower for the day was Manulife Financial Corp., down 0.9% to $21.22, and Power Financial Corp., off 1.9% to $26.60.

Meanwhile, August gold rose US$1.50, or 0.2%, to end at US$941 an ounce on the Comex division of the New York Mercantile Exchange. For the week, gold futures advanced 0.6%, marking their first weekly gain in four weeks.

Despite the gains, materials stocks on the TSX shed 0.9% on Friday, and the sub-gold index fell 2.1%.

Goldcorp Inc. shares fell 1.9% to $41.54 and Kinross Gold Corp. slipped 1.3% to $21.82.

Shares of Agnico-Eagle Mines Ltd. dropped $1.60, or 2.5%, to $62.66.

Shares of Potash Corp. also retreated on Friday, after the company announced late on Thursday that it cut its earnings guidance for the second quarter, citing lower-than-expected sales volumes. Potash shares fell 39 cents to $107.66.

Up for the day was First Quantum Minerals Ltd., which gained $1.34, or 2.5%, to $55.34.

Energy stocks fell 0.9% on Friday as oil futures finished lower for a second consecutive week. August crude fell US$1.07, or 1.5%, to end at US$69.16 a barrel on the New York Mercantile Exchange. The futures fell 1.2% this week.

EnCana Corp.’s stock fell 1.3% to $56.81 and Imperial Oil Ltd. shares shed 1.2% to $44.45.

Shares of Petrobank Energy and Resources Ltd. dropped $1.20, or 3.5%, to $33.44.

Also lower was Nexen Inc., down 1.2% to $24.58.

Junior stocks also finished higher on Friday, sending the S&P/TSX Venture composite index up 8.54 points, or 0.8%, to close at 1,111.59.

The Canadian dollar edged up by US0.15¢ to close at US86.64¢ on Friday.

In New York, U.S. stocks finished with mixed results after the Commerce Department reported monthly increases in personal spending and incomes in May, and a surge in household savings.

The main stock market indexes finished mostly lower for the week.

The Dow Jones industrial average fell 34.01 points, or 0.4%, to 8,438.39, leaving it down 1.2% for the week.

The S&P 500 shed 1.36 points, or 0.2%, to 918.90, off 0.3% from the week-ago close.

The Nasdaq composite index gained 8.68 points, or 0.5%, to 1,838.22, leaving the index up 0.6% for the week.

IE