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* TSX up 188.16 points, or 1.55 percent, at 12,331.32
* Nine of the TSX's 10 main groups move higher
By Fergal Smith
TORONTO, Jan 26 (Reuters) - Canada's main stock index rose
on Tuesday as shares in energy companies and banks were helped
higher by a recovery in the price of oil to above $31 a barrel,
while a 12-week high for the price of gold helped lift mining
stocks.
The most influential risers were mostly energy stocks and
banks, which together account for more than half of the index's
weight and have both fluctuated in recent days in tandem with
moves in the oil market.
"It is clear that the bears are pretty exhausted here and
the bulls are starting to take over," said Colin Cieszynski,
senior market analyst at CMC Markets Canada.
The market has rebounded from a three-year low last week.
Earlier this month, it was down more than 20 percent from its
September 2014 record high, indicating a bear market.
The energy group climbed 4 percent, with Suncor Energy Inc
SU.TO adding 3.5 percent to C$31.00 and Canadian Natural
Resources CNQ.TO jumping 6.1 percent to C$26.42.
U.S. crude CLc1 prices settled at $31.45 a barrel, up 3.7
percent, as investors hoped OPEC and non-OPEC producers were
inching closer to a deal to reduce output amid one of the
biggest supply gluts in decades. O/R
"It shows what happens when the commodity prices start
turning around and some of the negativity starts going away,"
said Cieszynski.
The materials index rose 2.1 percent, including a 3 percent
gain for Goldcorp Inc G.TO to C$15.10. Spot gold rose 1.3
percent to $1,121.76 an ounce. GOL/
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 188.16 points, or 1.55 percent, at
12,331.32. Nine of the index's 10 main groups were in positive
territory.
"The breadth of the rally outside of resource sectors is
also very strong and very encouraging," said Cieszynski.
Financial sector stocks gained nearly 1 percent, with
Toronto-Dominion Bank TD.TO rising 1.4 percent to C$50.87 and
Bank of Montreal BMO.TO up 1.5 percent at C$72.78.
Valeant Pharmaceuticals International Inc (N:VRX) VRX.TO rose 4.9
percent to C$138.87, while Canadian National Railway Co CNR.TO
was up 1.6 percent at C$71.29.
Retailer Metro Inc MRU.TO fell 3.8 percent to C$40.27
after earlier hitting an all-time high on better-than-expected
profit and a hike in its dividend.