March 25 (Reuters) - Canada's main stock index added to this week's gains on Wednesday as signs of potential de-escalation in the Middle East war boosted investor sentiment, with metal mining shares leading a broad-based rally.
The Toronto Stock Exchange's S&P/TSX composite index ended up 441.01 points, or 1.4%, at 32,382.60, marking its third straight day of gains and its highest closing level since March 17.
Iran is still reviewing a U.S. proposal to end the war despite an initial response that was negative, a senior Iranian official told Reuters, indicating that Tehran had so far stopped short of rejecting it outright.
"It may be a relief rally because things got depressed lately," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "So far so good, but we're still in a volatile environment."
All 10 major sectors notched gains, including the materials sector , which includes metal mining shares. It was up 3.3% as gold and copper prices climbed.
Industrials rose 1.3%, heavily weighted financials added 0.9% and utilities ended 1.2% higher.
Shares of Boralex jumped nearly 11% after the company agreed to be acquired by Brookfield and La Caisse.
Energy was up 0.8% even as the price of oil settled 2.2% lower at $90.32 a barrel. The war has all but halted shipments of oil and liquefied natural gas through the Strait of Hormuz, which typically carries about one-fifth of the world's LNG and crude supply.
Canada's federal government and the government of Alberta have reached an agreement-in-principle aimed at reducing methane emissions in the province's oil and gas sector, Canadian Prime Minister Mark Carney's office said.
(Reporting by Fergal Smith in Toronto and Rashika Singh in Bengaluru; Editing by Diti Pujara and Will Dunham)
By Fergal Smith
