TORONTO (Reuters) - The Toronto Stock Exchange’s main index sank nearly 120 points despite a glowing earnings report from Royal Bank of Canada, as investors stayed cautious following this week’s global equities sell-off.

The S&P/TSX composite index closed down 117.86 points, or 0.9 percent, at 12,863.27, a six-week low, giving back 3.6 percent on the week.

The slide continued from the TSX’s 2.7 percent plunge on Tuesday, its worst drop in almost three years, triggered when China’s benchmark stock index fell almost 9 percent amid concerns over global growth.

On Friday, the strength in the yen prompted concerns that investors were getting out of risky investments they had financed in yen, fuelling a further sell-off in global markets.

“The risk is for further fallout next week,” said Fergal Smith, managing market strategist at Action Economics.

“I think volatility will remain elevated for a while.”

“If the yen continues to rally it will be the key thing to watch early next week because that’s pressuring leveraged investors who are being forced to unwind carry trades,” he added.

In carry trades, investors borrow in low-yielding currencies and use the money to invest in markets with higher returns.

All but one of the TSX index’s 10 main groups were lower, led down by a 2.5 percent slump in the resource-laden materials group.

The heavyweight financial services sector gained 0.3 percent.

Shares of miners dropped amid weaker metal prices. Barrick Gold shed 72 Canadian cents, or 2.1 percent, to C$33.62, while Goldcorp slid 77 Canadian cents, or 2.5 percent, to C$29.85.

The energy group fell 1.6 percent, with EnCana down C$1.38, or 2.4 percent, to C$55.26, and Talisman Energy dropping 98 Canadian cents, or five percent, to C$18.81.

Shares of Royal Bank rose 98 Canadian cents, or 1.8 percent, to C$54.86 after Canada’s biggest bank said it posted a 27.6 percent rise in first-quarter profit, which topped expectations.

It also hiked its quarterly dividend by 15 percent to 46 Canadian cents a share.