May 1 (Reuters) - Canada's main stock index traded flat on Friday as technology stocks climbed while energy and materials shares retreated, with investors weighing potential diplomatic progress in the Middle East and corporate earnings.
At 10:38 a.m. ET, the Toronto Stock Exchange's S&P/TSX Composite Index (.GSPTSE), was up 0.04% at 33,951.33 points, on track to end the week with nominal gains.
The benchmark rose 3.65% in April, buoyed by tentative hopes of a resolution to the U.S.-Iran war, recouping much of March's losses.
Investor sentiment was supported by a report from Iranian state media that said Tehran sent its latest proposal for negotiations with the United States to Pakistani mediators on Thursday.
The energy sub‑index (.SPTTEN), slipped 1.8% as oil prices eased following the news.
The heavy-weight mining stocks (.GSPTTMT), also fell 0.8%, tracking lower gold prices.
"There’s going to be a lot of uncertainty until the tensions kind of die down," said Webull Canada CEO Michael Constantino, adding that the TSX appeared set to ride out the volatility once tensions ease.
Technology stocks (.SPTTTK), led the gainers on the day, rising 1.7%.
Badger Infrastructure (BDGI.TO), jumped 12.4% to the top of the main index after the non-destructive excavation firm's first-quarter revenue beat estimates on strong end-market demand and higher fleet utilization.
Imperial Oil (IMO.TO), fell 4% after the Canadian oil producer posted a fall in first-quarter profit, hurt by lower refinery throughput.
Separately, data released on the day showed Canada's manufacturing sector expanded in April at its fastest pace in nearly four years, as the Middle East conflict spurred inventory building and added to inflation pressures.
Reporting by Tharuniyaa Lakshmi in Bengaluru; editing by Joyjeet Das
