* TSX up 179.27 points, or 1.2 percent, at 15,079.74
* Five of the 10 main index sectors advance
* Canadian Oil Sands jumps 17.7 percent
By John Tilak
TORONTO, Feb 3 (Reuters) - Canada’s main stock index jumped to its highest in more than two months on Tuesday as energy shares rose as oil prices extended a rally on hopes that oil production might come down.
After slumping to multiyear lows in recent months over concerns about oversupply, the price of oil began bouncing back late last week. The U.S. crude oil price was up about 3 percent on Tuesday, and some investors were betting that it might have found a bottom.
Investors were also encouraged by data showing that growth in U.S. manufacturing sector held steady in January.
The benchmark TSX index was up for a fourth-straight day and has advanced about 3 percent year-to-date.
“We’re getting a nice relief rally here,” said Colin Cieszynski, chief market strategist at CMC Markets. “We’ll still see choppiness and volatility throughout the year because we’ve had a major shock to the economic system.”
“We’re seeing these effects work their way through the system, and that could take a while,” he added.
The Toronto Stock Exchange’s S&P/TSX composite index was up 179.27 points, or 1.2 percent, at 15,079.74. Five of the 10 main sectors on the index were higher.
Banks and other financial stocks added 2.1 percent. Bank of Montreal climbed 2.7 percent to C$76.16, and Toronto-Dominion Bank was up 2.2 percent at C$52.46.
In the energy sector, which was up 4.1 percent, Canadian Natural Resources Ltd added 2.7 percent to C$39.96 and Penn West Petroleum jumped 18.5 percent to C$2.54.
Canadian Oil Sands Ltd rose 17.7 percent to C$11.12, adding to gains of 20.4 percent and 20.6 percent in the previous two sessions, respectively. Investors have been cheering aggressive moves made by the company in response to the drop in oil prices.
$1=$1.25 Canadian Editing by Peter Galloway