(Adds quotes, details on central bank, fiscal spending; updates
prices)
* TSX up 353.72 points, or 2.94 percent, at 12,389.58
* All of the TSX's 10 main groups rise; energy jumps 5.6 pct
* Index rises 2.6 percent for the week
By Fergal Smith
TORONTO, Jan 22 (Reuters) - Canada's main stock index scored
its biggest rally in more than four years on Friday, led by oil
and gas stocks as crude prices surged and investors welcomed
hints of more stimulus from global central banks.
Sharp gains on Thursday and Friday left the index 2.6
percent higher for the week, supported by a recovery in crude
oil prices and optimism that central banks in Europe and Japan
will increase policy stimulus.
"The market was becoming extremely oversold in the short
run," said Irwin Michael, portfolio manager at ABC Funds.
"Investors were anxiously awaiting for some stability in the
commodities, and oil and gas and the mining sector."
U.S. crude CLc1 prices settled at $32.19 a barrel, up 9.01
percent, as bearish traders who had taken out record short
positions scrambled to close them. O/R
The energy sector climbed 5.6 percent, with Suncor Energy
Inc SU.TO up 5.3 percent at C$31.33 and Enbridge Inc ENB.TO
advancing 6.2 percent to C$47.42.
A surprisingly big jump in retail sales provided much-needed
vigor for a struggling domestic economy.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE rose 353.72 points, or 2.94 percent, to 12,389.58. It
was the sharpest advance since Nov. 30, 2011, and all 10 main
groups were in positive territory.
On Wednesday, the index hit its lowest level since August
2012 at 11,531.22.
A decision this week by the Bank of Canada to not reduce
interest rates has also lifted stocks by helping to stabilize
the Canadian dollar, Michael of ABC Funds said.
It has put the onus on the new Liberal government to raise
fiscal spending.
A smart fiscal package spent efficiently would have a
positive impact on the Canadian market, said Macan Nia,
director, capital markets & strategy, at Manulife Asset
Management.
Royal Bank of Canada RY.TO jumped 5.0 percent to C$69.34.
It sold its general insurance arm to Aviva (L:AV) on Thursday.
Toronto-Dominion Bank climbed 3.0 percent to C$51.68, while
the overall financial services sector rose 3.1 percent.
Railway stocks also rallied, with a 10.6 percent jump in
Canadian Pacific Railway CP.TO to C$165.74 one day after
reporting a profit below expectations on lower freight volumes.
The materials sector, which includes precious and base
metals miners and fertilizer companies, added 1.2 percent, while
telecom stocks rose 4.1 percent.