TSX rises with banks, Suncor; Valeant slumps on arrests

TORONTO (Reuters) - Canada’s main stock index gained on Thursday in a broad rally led by heavyweight resource and financial stocks, as crude prices rose and the country’s largest oil and gas company forecast higher production and lower costs in 2017.

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch

Suncor Energy Inc SU.TO rose 0.6 percent to C$41.25 after it said it expected production to rise by more than 13 percent next year and spending to fall by more than C$1 billion ($746 million).

The overall energy group climbed 0.7 percent, with oil prices boosted by Saudi optimism that OPEC will be able to reach a deal to curb output later this month. [O/R]

At 10:26 a.m. EDT, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 77.90 points, or 0.53 percent, at 14,811.12.

All of the index’s 10 main groups were in positive territory, with four advancers for every decliner.

Offsetting the gains, Valeant Pharmaceuticals International Inc VRX.TO shares fell 6.4 percent to C$22.49 after two former executives were arrested on charges related to an investigation into the drugmaker's ties to a specialty pharmacy company.

The materials group, which includes precious and base metals miners and fertilizer companies, added 0.8 percent, while industrials rose 0.3 percent.

Bombardier Inc BBDb.TO shares advanced 1.6 percent to C$1.94 after the plane and train maker moved to raise funds to refinance some debt.

The heavyweight financials group gained 0.5 percent, with Royal Bank of Canada RY.TO up 0.7 percent at C$86.63. and Bank of Nova Scotia BNS.TO adding 0.9 percent to C$71.27.

Great Canadian Gaming Corp GC.TO fell 8.8 percent to C$23.40 after the company said an insider plans to sell a large stake.

Foreigners bought C$11.77 billion ($8.78 billion) worth of Canadian securities in September, setting a new record for investment for the first nine months of the year, Statistics Canada said.

Reporting by Alastair Sharp; Editing by Bernadette Baum