(Adds portfolio manager comment, updates prices to close)
* TSX ends up 214.16 points, or 1.73 percent, at 12,591.93
* Seven of the TSX's 10 main groups rise
By Alastair Sharp
TORONTO, Jan 28 (Reuters) - Canada's main stock index made
sharp gains on Thursday, with energy stocks riding an oil price
rally tied to hopes for a deal to clear a global glut, while
shares of Bombardier Inc BBDb.TO fell further into territory
that risks expulsion from the index.
The energy sector climbed 5.3 percent as oil LCOc1 CLc1
surged as much as 8 percent to above $35 per barrel, rebounding
from a 12-year low set this month. O/R
Financial stocks added 2.5 percent, as the jump in crude
helped alleviate some concern among investors about bank
exposure to bad loans in Canada's oil patch.
Crude prices pared some gains, however, as analysts and
market watchers expressed skepticism that a deal among
oil-producing countries would be struck, particularly as Iran,
which has boosted oil exports after the lifting of sanctions,
seeks to recover market share.
"I'm not a hundred percent certain that this is the
all-clear yet, that this is the bottom" for oil prices and oil
equities, said Manash Goswami, a portfolio manager at First
Asset Investment Management. "It's not all rosy out there."
The most influential movers on the index included Canadian
Natural Resources CNQ.TO , which jumped 5.4 percent to C$29.18,
and Suncor Energy Inc SU.TO , which gained 4.5 percent to
C$32.83. Pipeline operator Enbridge Inc ENB.TO advanced 2.3
percent to C$46.45.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 214.16 points, or 1.73 percent, at 12,591.93.
It was its third straight day of gains after hitting its
lowest since August 2012 on Jan. 20.
Advancers outnumbered decliners by more than 2 to 1, and
seven of the index's 10 main groups were in positive territory.
Bombardier fell 10.1 percent to C$0.89, as some funds dumped
its shares on fears the train and plane maker could be ejected
from Canada's main index.
The industrials sector to which Bombardier belongs jumped
2.1 percent.
Contract electronics manufacturer Celestica Inc CLS.TO
fell 15.7 percent to C$11.68 after posting an earnings miss and
giving a dire outlook after the bell on Wednesday.
The materials group, which includes precious and base metals
miners and fertilizer companies, lost 0.9 percent.
Copper prices CMCU3 fell 1.3 percent to $4,530 a tonne,
while gold futures GCc1 slipped 0.2 percent to $1,114 an
ounce. MET/L GOL/