(Updates prices to close)
* TSX ends up 88.24 points, or 0.60 percent, at 14,840.49
* Index touches and settles at highs last seen in June 2015
* Seven of the index's 10 main groups make gains
By Fergal Smith and Alastair Sharp
TORONTO, Oct 19 (Reuters) - Canada's main stock index closed at its highest since June 2015 on Wednesday, led by energy and mining companies, as oil surged and gold rose, while financial stocks also gained ground.
The index has rebounded nearly 29 percent since falling to a three-year low in January but had been unable to reach new highs since August.
"As long as you have the economy continuing to do OK and you have a bid on the energy side and a stabilization of oil prices, I think there is room for the market to head higher into year end," said Bryden Teich, portfolio manager at Avenue Investment Management.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 88.24 points, or 0.60 percent, at 14,840.49, its highest finish since June 25, 2015.
The gains for the index came as the Bank of Canada cut its growth forecast and said it actively discussed adding more monetary stimulus to speed up the nation's economic. energy group rose 1.7 percent as U.S. crude oil climbed to a 15-month high.
Enbridge Inc ENB.TO , Canada's largest pipeline company, rose 1.1 percent to C$58.79. It is laying off 5 percent of its work force after an organizational review, a spokeswoman said. Energy Inc SU.TO rose 1.1 percent to C$38.38 and Encana Corp ECA.TO added 3.1 percent to C$15.06, while
U.S. crude CLc1 prices settled up $1.31 at $51.60 a barrel as the government reported a drop in domestic inventories for the sixth week out of seven. O/R
Higher oil prices support Canada's economy and give a lift to other sectors of the TSX, including financials, Teich said.
Financials rose 0.2 percent, helped also by positive earnings momentum from U.S. financials, said Teich.
The materials group, which includes precious and base metals miners and fertilizer companies, added 1.8 percent.
Goldcorp Inc G.TO rose 3.2 percent to C$20.11, while Barrick Gold Corp ABX.TO was up 5.7 percent at C$22.69.
Spot gold XAU= firmed 0.5 percent amid uncertainty around the timing of a U.S. interest rate increase. GOL/
Seven of the index's 10 main groups were higher, with industrials down 0.5 percent.
Canadian Pacific Railway Ltd CP.TO declined 1.9 percent to C$197.41 after the railroad, the country's second largest, reported a 9.1 percent drop in quarterly revenue, mainly because of a delayed grain harvest and lower crude oil volumes. (Editing by Diane Craft and Steve Orlofsky)