CANADA STOCKS-TSX jumps nearly 2 percent as energy stocks surge

Thu Jan 28, 2016 4:59pm EST
 
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(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 fell further into territory that risks expulsion from the index.

The energy sector climbed 5.3 percent as oil surged as much as 8 percent to above $35 per barrel, rebounding from a 12-year low set this month.

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."   Continued...