TORONTO (Reuters) — The Toronto Stock Exchange's main index capped a positive week with a modest gain yesterday, lifted by positive economic data and continued strength in mining shares.The S&P/TSX composite index closed up 39.29 points, or 0.3 percent, at 14,118.70. It added 1.5 percent in the quiet, holiday-shortened week, driven partly by raw materials producers, which were up 5.4 percent over four days.

Gold miner Goldcorp led all weighted gainers, up 67 Canadian cents, or 2.6 percent, at C$26.97. Barrick Gold meanwhile advanced 42 Canadian cents, or 1.3 percent, to C$32.16.

The market may have had its eye on Newmont Mining Corp. , which in a bullish move eliminated its gold hedge position, encouraging other miners to buy back their positions.

Alcan Inc. rounded out the TSX's top three gainers, up C$1.08, or 1.2 percent, at C$90.90 after reports that global mining giant Rio Tinto may make a takeover bid for the Canadian aluminium producer.

Rio may have held talks with Alcan's management on a counter offer for the aluminum producer, which has rejected a $27.7 billion hostile bid from rival Alcoa Inc., the London-based Daily Telegraph newspaper said on its web-site, without citing anybody.

And yesterday, the Sydney Morning Herald said that Rio has done "a tremendous amount of work" on a potential offer for Alcan, citing a person in London whom it didn't name.

At the same time, the price of aluminium rose to a five-week highs. Oil too hit a multiple-week high, but the TSX energy sector was flat after a flat week.

Financials was one of four sectors to retreat Friday, slipping 0.1 percent as strong Canadian jobs data solidified expectations that the Bank of Canada will raise interest rates next week.

Bank of Montreal was down 29 Canadian cents, or 0.4 percent, at C$69, and Sun Life Financial Inc. slipped 17 Canadian cents, or 0.3 percent, to C$50.51.