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* TSX up 166.23 points, or 1.23 percent, at 13,636.06
* Seven of the TSX's 10 main groups rise
By Fergal Smith
TORONTO, Dec 1 (Reuters) - Canada's main stock index rallied
on Tuesday to its highest closing level in nearly four weeks,
led by financials following stronger-than-expected earnings for
two of the country's main banks, while resource stocks also
gained.
Bank of Montreal BMO.TO rose 1.4 percent to C$78.22 after
reporting higher quarterly profit and upping its dividend.
Bank of Nova Scotia BNS.TO also reported higher quarterly
profit, but weakness in its capital markets business and an
increase in bad energy loans kept optimism in check, with the
stock dipping 0.1 percent to C$60.83.
Bank earnings are still moving in the right direction,
according to Ian Nakamoto, director of research at MacDougall,
MacDougall & MacTier, adding that "loan losses still seem to be
manageable."
The overall financials group, which accounts for more than
one-third of the index's weight, climbed 1 percent.
Energy stocks climbed 1.3 percent, with Suncor Energy Inc
SU.TO up 2.4 percent to C$37.79.
Canadian Oil Sands Ltd COS.TO rose 4.3 percent to C$8.93
following news late on Monday that shareholders will have an
extra month to consider Suncor's hostile takeover bid
while the company set a 2016 capital expenditure
budget 35 percent lower its projection for this year.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 166.23 points, or 1.23 percent, to
13,636.06, with seven of the index's 10 main groups in positive
territory.
The materials group rallied 1.5 percent as strength in gold
stocks offset a 1.4 percent drop in Potash Corp POT.TO to
C$26.65.
Valeant Pharmaceuticals International Inc (N:VRX) VRX.TO surged
9.6 percent to C$131.89, extending its rebound from a C$92.65
trough on Nov 18.
ProMetic Life Sciences PLI.TO shares plunged 11.3 percent
to C$3.14 after the company said it will transition its drug to
treat Type 2 diabetes to a new placebo-controlled trial.
U.S. crude CLc1 prices settled at $41.85 a barrel, up 0.48
percent, while Brent crude LCOc1 lost 0.4 percent to $44.42.
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