(Adds comment, Alberta royalty review; updates prices to close)
* TSX ends up 230.20 points, or 1.83 percent, at 12,822.13
* Index gains 3.4 pct on week, off 1.4 pct in January
* All of the TSX's 10 main groups rise at least 1.2 pct
By Alastair Sharp and Fergal Smith
TORONTO, Jan 29 (Reuters) - Canada's main stock index jumped
on Friday as investors cheered the Bank of Japan's bold move to
stimulate growth, while rising oil prices and an accommodative
royalty update in Alberta boosted energy stocks.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 230.20 points, or 1.83 percent, at 12,822.13.
It gained 3.4 percent on the week, a second strong weekly
performance after touching its lowest since August 2012 earlier
in the month. It lost 1.4 percent in January.
All 10 main groups rose at least 1.2 percent, with sentiment
helped by the Bank of Japan unexpectedly cutting a benchmark
interest rate below zero in a bid to overcome deflation, using
an aggressive policy pioneered by the European Central Bank.
The energy sector gained 1.3 percent as the oil and gas
industry in Canada, home to the world's third-largest crude
reserves, cheered a review of royalties in Alberta that kept
rates unchanged on existing oil wells and oil sands projects.
"We are getting a little bit more clarity as to how those
royalty streams are going to be taxed and paid," said Kevin
Headland, a director in the portfolio advisory group at Manulife
Asset Management.
"Clarity is always good for the equity markets, especially
when the clarity is on a good news front for the energy patch."
Canadian Natural Resources CNQ.TO ended up 2.8 percent at
C$29.99 and Suncor Energy Inc SU.TO rose 1.1 percent to
C$33.18.
The broad rally echoed larger gains on Wall Street after
weak GDP data raised expectations that the U.S. Federal Reserve
would go slow on future interest rate hikes. .N
Oil prices rose further, rebounding more than 25 percent
from 12-year lows hit last week, on prospects of a deal between
major exporters to cut production and curb one of the biggest
supply gluts in history.
Investors should still be cautious about Canadian equities
even though they appear broadly cheaper than U.S. peers, warned
Shailesh Kshatriya, director of strategy at Russell Investments
Canada, given an uninspiring economy backdrop.
"It's price to earnings, and how valid is that forward
earnings component," he said. "Herein lies the uncertainty for
the Canadian equity markets as well," he said.
Valeant Pharmaceuticals (N:VRX) International VRX.TO rose 6.6
percent to C$129, recovering some of its losses since U.S.
Democratic presidential candidate Hillary Clinton criticized
exorbitant pricing for one of the company's drugs while on the
campaign trail.