May 25 (Reuters) - Canada’s main stock index rose on Tuesday, powered by gains in energy stocks as oil prices rose on easing expectations of higher supply from crude exporter Iran. * The energy sector climbed 1.0% as U.S. crude prices were up 0.2% a barrel, while Brent crude was unchanged. * At 09:18 a.m. ET (13:48 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 115.01 points, or 0.59%, at 19,642.31. * The Canadian dollar edged lower against its broadly weaker U.S. counterpart as domestic data showed a likely drop for manufacturing sales in April, but the currency stayed within reach of last week’s 6-year high. * Steelmaker Algoma Steel is becoming a publicly listed company through a merger agreed with New York-based blank-check firm Legato Merger Corp in a deal that will value the combined company at more than $1 billion. * The financials sector gained 0.7%. The industrials sector rose 0.8%. * The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.2% as gold futures were down 0.2% an ounce. * On the TSX, 118 issues were higher, while 106 issues declined for a 1.11-to-1 ratio favoring gainers, with 23.87 million shares traded. * The largest percentage gainers on the TSX were Ivanhoe Mines Ltd, which jumped 6.2%, and Toromont Industries , which rose 5.4%. * Finning International Inc fell 6.5%, the most on the TSX, after BMO cut its target price. * The second-biggest decliner was Trillium Therapeutics , down 3.1%. * The most heavily traded shares by volume were Air Canada and The Supreme Cannabis Company. * The TSX posted 16 new 52-week highs and no new lows. * Across all Canadian issues there were 81 new 52-week highs and 7 new lows, with total volume of 51.02 million shares. (Reporting by Shivani Kumaresan in Bengaluru; Editing by Aditya Soni) Our Standards: The Thomson Reuters Trust Principles.