Canada's main stock index rose to a four-month high on Friday, ending the month with a 2.8 per cent gain, as the heavyweight financials group climbed and BlackBerry Ltd added to strong gains posted a day earlier.

The index gained 3 per cent in the quarter and September's rally was the best performance for the TSX since July 2016. A rally in crude oil prices has helped boost energy shares, while financials have benefited from higher bond yields after the Bank of Canada raised interest rates for a second time and the Federal Reserve signaled it remained on track to hike again in December.

Combined, the financial and energy groups account for more than half of the Toronto market's weight.

Some of the most influential movers on the index on Friday were the shares of banks, which tend to see improved net interest margins as bond yields rise.

"A lot of [portfolio] managers want to show that they have good exposure to areas that have worked and are paying good dividends," said Sid Mokhtari, market technician and director of institutional equity research at CIBC World Markets.

Royal Bank of Canada (RY.TO) climbed 0.6 per cent to $96.54, while the overall financials group ended up 0.4 per cent.

Shares of BlackBerry Ltd (BB.TO) climbed 7.3 per cent to $13.95, building on a 12.7 per cent advance on Thursday when the company reported stronger-than-expected quarterly profit.

Both RBC and CIBC on Friday raised their price targets on the stock.

The Toronto Stock Exchange's S&P/TSX composite index ended up 16.69 points, or 0.11 per cent, at 15,634.94, its highest close since May 8.

Shares of Bombardier Inc (BBDb.TO) rose 2.3 per cent to $2.26 after the company sealed a deal to sell up to 50 Q400 turboprop planes to India's SpiceJet.

Valeant Pharmaceuticals International Inc (VRX.TO) gained 4.6 per cent to $17.88 after the company completed the sale of Inova Pharmaceuticals to Pacific Equity Partners and the Carlyle Group.

Seven of the index's 10 main groups gained ground. Energy was one of the sectors to retreat, falling 0.4 per cent.

Still, the group has rallied 15 per cent since late August.

U.S. crude oil futures, which reached their highest intraday on Thursday since mid-April, settled up 11 cents US at US$51.67 a barrel.

Norbord Inc (OSB.TO), which produces wood-based panels used in the construction of new homes, ended down 7.5 per cent at $47.51 after BMO cut its rating on the stock to underperform.

Domestic data showed that gross domestic product was unchanged in July, ending eight consecutive months of growth.