TORONTO - The Toronto stock market posted a modest gain Friday even as China moved for the second time this year to contain rapid economic growth.

The S&P/TSX composite index gained 34.32 points to 11,469.81 at the end of a volatile session.

The TSX came back from a 100-point deficit as losses in the commodity sectors moderated and the tech sector gained traction.

The TSX was ahead 247 points or 2.19 per cent for the week, with most of the gain coming Thursday following a pledge by EU leaders to support Greece through its debt crisis. Although some investors were disappointed with a lack of detail and concrete measures, the hope was that a finance ministers' meeting next week will provide some answers.

The Canadian dollar was down 0.05 of a cent at 95.08 cents US.

The TSX Venture Exchange gained 6.08 points to 1,498.75.

China has moved to raise its reserve rate by half a percentage point, which would require large banks to set aside more cash at the central bank, which in turn would leave less money to lend out.

Because Chinese growth has been one of the main drivers of the global economic recovery, the news unsettled investors.

"It's no surprise that they're again raising (reserve levels), trying to cool down the boom that they're seeing," said Kate Warne, Canadian markets specialist at Edward Jones in St. Louis.

"Clearly, the stimulus that they put to work last year is now leading the economy to near overheating and I think what they're really trying to do is pull things back so they don't end up in a boom-and-bust cycle."

Worries about a possible slowdown in the Chinese economy lessening demand for commodities pushed the March crude contract on the New York Mercantile Exchange down $1.15 to US$74.13 a barrel. The TSX energy sector moved up 0.25 per cent, with Suncor Energy (TSX:SU) falling 36 cents to C$30.85 but EnCana Corp. (TSX:ECA) advancing 61 cents to C$33.68.

The tech sector was ahead 1.3 per cent with Research In Motion Ltd. (TSX:RIM) rising $2.41 to $75.30 and Celestica (TSX:CLS) up 18 cents at $10.97.

The financial sector was up 0.24 per cent but investors continued to punish two of Canada's major insurers a day after handing in disappointing earnings reports. Sun Life Financial (TSX:SLF) lost 29 cents to $30.11 while Manulife Financial (TSX:MFC) was down 18 cents at $18.98.

The telecom sector was up 0.58 per cent but Telus Corp. (TSX:T) shares were down 18 cents at $33.62. Canada's second-largest phone company said that it earned $156 million or 49 cents a share in the fourth quarter, down 45 per cent from $285 million or 90 cents a share a year earlier. Operating revenue slipped less than one per cent to $2.44 billion.

The base metals sector led Toronto decliners, down 0.73 per cent as March copper fell five cents to US$3.08 a pound. Equinox Minerals (TSX:EQN) gave back 11 cents to C$3.49 while Sherritt International (TSX:S) added 15 cents to C$7.22.

The April gold contract on the Nymex declined $4.70 to US$1,090 an ounce, taking the gold sector down 0.68 per cent.

New York markets were mainly lower even as U.S. retail sales rose 0.5 per cent in January. The showing was the best since November and higher than the 0.3 per cent increase economists had expected. Excluding autos, sales posted a 0.6 per cent increase for the month, also better than expected.

The Dow Jones industrial average lost 45.05 points to 10,099.14 while the Nasdaq composite index gained 6.12 points to 2,183.53 and the S&P 500 index was off 2.96 points at 1,075.51.

In Canada's media industry, Shaw Communications (TSX:SJR.B) announced plans to buy a controlling stake in Canwest Global Communications Corp. (TSXV:CGS), the heavily indebted media company that owns Global Television.

Calgary-based Shaw, which owns cable, satellite TV, Internet and phone services, would have at least 20 per cent of Canwest's equity and 80 per cent of its voting stock after Canwest is restructured as a "pure play" broadcasting company.

Canwest's newspaper business, which includes the National Post, isn't part of the Shaw deal -- which is subject to several conditions and approvals.

The amount that Shaw would pay wasn't disclosed and its shares declined 50 cents to $19.30 while Canwest shares jumped seven cents or 116.6 per cent to 13 cents on the TSX Venture Exchange.

In other corporate news, income trust Precision Drilling (TSX:PD.UN) said it will convert into a growth-oriented corporation by the end of May. The company also posted a $24.9-million loss in the fourth quarter, compared with a profit of $92.4 million in the fourth quarter of 2008.

The Calgary-based trust, one of the North American energy sector's biggest contract drillers, said the switch to a corporate structure will be more attractive to investors given changes to federal tax law announced in October 2006. Its units were down 22 cents at $8.59.

And mutual fund company IGM Financial Inc. (TSX:IGM), which has Investors Group and Mackenzie Financial under its corporate umbrella, reported quarterly net income of $113.7 million, up from $79.8 million in the same 2008 period. For all of 2009, unadjusted net income was $559.1 million, down from $730.8 million in 2008. Its shares climbed 11 cents to $42.01.

The Toronto stock market will be closed Monday as the TSX closes for Ontario's Family Day holiday. New York markets will also be shuttered Monday, Presidents Day.