CANADA STOCKS-TSX rises, led by energy stocks as oil prices rally

(Adds portfolio manager quotes, updates prices)
By Fergal Smith
TORONTO, Jan 14 (Reuters) - Canada's main stock index rose
on Thursday as a rally in crude oil prices helped the battered
energy sector rebound, while financial stocks saw more modest
gains amid speculation the Bank of Canada will cut its key
interest rate next week.
The index recovered from a fresh 2-1/2-year low earlier in
the session. Still, it has fallen 5.6 percent in the first two
weeks of 2016 as a deep slump in oil prices weighs on the
resource-linked market. It tumbled 11 percent in 2015, its worst
year since the global financial crisis of 2008.
"The TSX bears the brunt of any concerns about global
growth," said Elvis Picardo, strategist and vice president of
research at Global Securities in Vancouver.
However, concern shown at the start of the year has been
overdone, he said. He is looking "for some kind of retracement
of recent losses," expecting the congestion area around the
12,000 threshold to provide "very strong support."
Energy stocks rose 4.3 percent, helped by the rally in oil
prices.
Enbridge ENB.TO rose 4.6 percent to C$44.78, while
Canadian Natural Resources CNQ.TO was up 4.8 percent at
C$25.90.
U.S. crude CLc1 prices settled at $31.14, up 2.2 percent
O/R
Canadian National Railway Co CNR.TO rose 1.7 percent to
C$74.16, while Valeant Pharmaceuticals International Inc (N:VRX)
VRX.TO rose 5.4 percent to C$129.25.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 165.62 points, or 1.36 percent, at
12,336.03. Nine of the 10 main sectors on the index were higher.
Bank stocks were mixed. Bank of Nova Scotia rose 1.2 percent
to C$53.63. But Toronto-Dominion Bank TD.TO declined 0.4
percent to C$51.29.
Anticipated Bank of Canada rate cuts don't bode well for
bank margins, Picardo said.