CANADA STOCKS-TSX recovers as commodity stocks rise, Air Canada shines

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TSX set for longest weekly losing streak in over two months

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Sun Life Financial up on strong Q1 earnings

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Air Canada benefits from travel demand in Q1, shares rise

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Silvercrest surges on upbeat Q1 results

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TSX up 0.1%

By Johann M Cherian

May 12 (Reuters) - Canada's main stock index bounced back on Friday after two straight sessions of losses, helped by gains in commodity-linked stocks, while Air Canada hit a near three-month high on smaller-than-expected quarterly loss.

Air Canada rose 2.1% after the country's largest airline benefited from resilient travel demand.

"The numbers that Air Canada put out were good, especially in terms of guidance they gave last week," said Greg Taylor, chief investment officer at Purpose Investments.

"It goes to show that there's a lot of pent-up demand for travel, and consumers still seem to be spending on airlines and travel experiences."

The industrial sector, housing the airline, added 0.9%.

At 10:07 a.m. ET (1407 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 20.84 points, or 0.1%, at 20,438.45.

The energy sector added 0.7% and the broader materials sector rose 0.3%, tracking marginal gains in commodity prices amid investor concerns about a gloomy demand outlook for raw materials globally.

The utilities sector also added 0.7%.

Still, the TSX is set for its third straight week of losses, the longest streak of weekly declines since late February.

For the week, commodity-linked sectors such as miners and energy firms are among the top decliners as concerns of slowing economic growth out of the U.S. and China weighed on the sentiment.

Among other movers, Silvercrest Metals Inc jumped 13.1% to log its best day in six months, after the precious metals miner reported a strong end to the first quarter of the year.

Sun Life Financial Inc added 0.1% after Canada's second-biggest life insurer reported upbeat first-quarter profit, helped by strong sales at home and in the U.S.

Investors are awaiting April domestic consumer inflation data, due on May 16. (Reporting by Johann M Cherian and Vansh Agarwal in Bengaluru; Editing by Shilpi Majumdar)