December 15, 2015 / 9:50 PM / 2 years ago

CANADA STOCKS-TSX rebounds off 2013 lows as energy gains, Valeant surges

3 Min Read

(Adds details, updates price action)

* TSX ends up 224.08 points, or 1.77 percent, at 12,919.57

* All of the TSX's 10 main groups move higher

By Alastair Sharp

TORONTO, Dec 15 (Reuters) - Canada's main stock index jumped on Tuesday, a day after hitting a more than two-year low, in a broad rally led by shares in energy companies as crude prices rose and as heavyweight bank stocks also gained.

But the most influential mover on the index was Valeant Pharmaceuticals International Inc, which surged 15.9 percent to C$149.75 after the company, which has been accused of price gouging, said it would sell its skin and eye products at a discount in more than 8,000 Walgreens Boots Alliance Inc's pharmacies in the United States.

The energy group climbed 2.4 percent as oil prices moved off multi-year lows. Canadian Natural Resources advanced 3 percent to C$29.67 and Suncor Energy Inc rose 1.7 percent to C$35.13.

Energy stocks are down almost 30 percent this year, and fell sharply after an OPEC meeting earlier this month failed to agree production cuts amid a global supply glut.

"Those stocks have been particularly hard hit in the last little while," said Michael Sprung, president at Sprung & Co Investment Counsel. "I don't think you can read too much into one day with a bit of a reversal here."

The heavyweight financial group climbed 1.4 percent, with Royal Bank of Canada advancing 1.7 percent to C$73.65 and Toronto-Dominion Bank rising 1.3 percent to C$53.92.

The Toronto Stock Exchange's S&P/TSX composite index ended up 224.08 points, or 1.77 percent, at 12,919.57.

On Monday, it had fallen to its lowest level since August 29, 2013.

Advancing issues outnumbered decliners by 192 to 41, with all 10 of the index's main groups in positive territory.

Hudson's Bay Co gained 4.9 percent to C$17.55 after the Wall Street Journal reported it was close to buying online retailer Gilt Groupe.

Investors are awaiting Wednesday's conclusion of a Federal Reserve policy meeting at which the U.S. central bank is widely expected to raise interest rates for the first time in nearly a decade.

Sprung said the outlook for Canadian equities in 2016 should be brighter than their performance in 2015.

"At some point, we're likely to see a turn in the commodity and energy sectors, and even barring that I think that we may see some positive results in some of the financials if interest rates start going up," he said.

A Reuters poll this week showed investors expect the index to gain 10 percent next year. (Reporting by Alastair Sharp; Editing by James Dalgleish and Chizu Nomiyama)

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