(New throughout, updates prices and market activity, adds
comments from portfolio manager, details on index performance)
* TSX closed up 312.18 points, or 2.49 percent, at 12,867.16
* Index reached its highest since Jan. 5 at 12,880.69
* Nine of the TSX's 10 main groups ended higher
By Fergal Smith
TORONTO, Feb 17 (Reuters) - Canada's main stock index scored
a six-week high on Wednesday, led by financial and energy stocks
after crude oil prices surged on supply freeze optimism.
Reduced concern among some investors about macro issues has
helped lift the index more than 7 percent from below 12,000 less
than a week ago.
It has "triggered a relief rally" in an "oversold" market,
according to Ben Jang, a portfolio manager at Nicola Wealth
Management.
China's economic slowdown, depressed crude oil prices and
European financial sector stress have weighed on global stocks
since the start of the year, according to Macan Nia, director,
capital markets & strategy at Manulife Asset Management.
"China opened this week (after the Lunar New Year
holiday)and there wasn't any precipitous selling, so that gave
reassurance to global investors," said Nia.
"Valuations were much more attractive than what they were at
the beginning of the year and you have seen long-term investors
strategically buy companies that they think have been thrown out
with the bathwater," he added.
Energy stocks rose 5.8 percent, tracking strength in crude
oil prices after Iran voiced support for a Russia-Saudi-led move
to freeze production. O/R
Suncor Energy Inc SU.TO rose 6.1 percent to C$32.89, while
Canadian Natural Resources CNQ.TO was up 7 percent at C$29.80.
U.S. crude CLc1 prices settled at $30.66 a barrel, up 5.6
percent.
Financial sector stocks rose 2.4 percent, including a 7.5
percent jump in the shares of Manulife Financial Corp MFC.TO
to C$17.88.
Brookfield Asset Management Inc BAMa.TO advanced 3.4
percent to C$42.67. It is planning a fresh $6.4 billion bid for
Australian port and rail firm Asciano AIO.AX with Qatar's
sovereign fund, two sources told Reuters.
Bombardier BBDb.TO surged 21.1 percent to C$1.09 after it
said Air Canada plans to buy 75 of its CSeries jets.
In contrast, Air Canada AC.TO declined 12.1 percent to
C$7.39. It reported a widening net loss and said its costs would
fall this year if the Canadian dollar remains unchanged from
2015 levels.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 312.18 points, or 2.49 percent, at
12,867.16. It touched its highest since Jan. 5 at 12,880.69.
Nine of the index's 10 main groups ended higher, with
telecoms down 0.1 percent.
Industrials rose 1.8 percent, while the materials group,
which includes precious and base metals miners and fertilizer
companies, added 2.4 percent.
Shares in e-commerce company Shopify gained 7.8 percent to
C$30.70 after posting strong quarterly results and 2016
forecasts.