(Adds strategist comment, updates prices to close)
* TSX ends up 89.45 points, or 0.63 percent, at 14,365.61
* Seven of the TSX's 10 main groups rise
By Alastair Sharp
TORONTO, June 7 (Reuters) - Canada's main stock index
extended its recent run to a more than nine-month high on
Tuesday as oil and gas stocks jumped with buoyant crude prices
and heavyweight financial stocks also rose.
Oil prices hit 2016 highs, with U.S. crude CLc1 settling
above $50 for the first time in almost a year, helping Canada's
heavyweight energy sector notch a 3 percent gain. O/R
Overall, the Toronto Stock Exchange's S&P/TSX composite
index .GSPTSE closed up 89.45 points, or 0.63 percent, at
14,365.61, its highest since mid-August.
Canadian Natural Resources Ltd CNQ.TO gained 4.2 percent
to C$40.01 and Suncor Energy Inc SU.TO added 1.9 percent to
C$36.50 while pipeline operator Enbridge Inc ENB.TO advanced
1.3 percent to C$54.49.
"My view is that we can see oil continuing to provide a lift
to the TSX, but I don't think it's going to be smooth between
now and the end of the year," said Philip Petursson, chief
investment strategist at Manulife Investments.
He said oil could push above $55 a barrel this year but
could also slip to the mid-$30s in a 'summer doldrums' scenario
or if OPEC surprised with a supply increase.
The energy group accounts for almost 20 percent of the
Canadian index's weight and its direction has largely driven the
index so far this year.
The financials group, more than one third of the index's
weight, gained 0.8 percent.
Seven of the index's 10 main groups were in positive
territory, with rising stocks almost doubling decliners.
The most influential gainers included Royal Bank of Canada
RY.TO , which rose 0.8 percent to C$79.95, and Bank of Nova
Scotia BNS.TO , which added 1.8 percent to C$67.07.
But the overall gains were capped by a sharp fall in shares
of Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO , which
settled down 15 percent at C$31.47.
The embattled drug company slashed its 2016 forecasts as its
new chief executive said he would focus on rebuilding the
reputation of a "distracted organization" with a debt-loaded
balance sheet.
Canadian National Railway Co CNR.TO added 0.5 percent to
C$77.44 after announcing its CEO would step down for medical
reasons. by Phil Berlowitz and James Dalgleish)