(Adds portfolio manager quote, details on consumer
discretionary and financial stocks, updates prices)
* TSX closed up 32.23 points, or 0.25 percent, at 12,845.63
* Eight of TSX's 10 main groups ended higher
TORONTO, Feb 22 (Reuters) - Canada's main stock index rose
on Monday as energy shares rallied on a jump in oil prices,
although gains were pared as the healthcare sector slumped and
bank stocks reversed course ahead of quarterly earnings this
week.
The index touched its highest since the start of the year
before losing some momentum and surrendering some recent
outperformance against U.S. markets.
It has fallen 1.3 percent year-to-date compared with a 4.8
percent drop for the S&P 500 .SPX .
The market paused ahead of bank earnings this week and "to
see whether oil is going to continue upward," said Irwin
Michael, portfolio manager at ABC Funds.
Major oil sands operator Suncor Energy Inc SU.TO gained
3.1 percent to C$33.89 and Canadian Natural Resources CNQ.TO
rose 2.7 percent to C$28.84, while the overall energy group
climbed 2.8 percent.
Oil markets settled up as much as 6 percent as speculation
about falling U.S. shale output and a rally in equities fed the
notion that crude prices may be bottoming after a 20-month
collapse. O/R
Consumer discretionary stocks rose 1.3 percent, led by a 3.3
percent gain for Magna International Inc MG.TO to C$48.67.
The materials group, which includes precious and base metals
miners and fertilizer companies, gained 0.4 percent.
Teck Resources Ltd TCKb.TO advanced 14.5 percent to
C$9.33, extending a sharp rally in recent days.
Barrick Gold Corp ABX.TO shares gained 1.7 percent to
C$17.55 after the world's largest gold miner said it would spend
about $2 billion on projects in Nevada and Peru for construction
starting in 2019.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 32.23 points, or 0.25 percent, at 12,845.63.
It touched its highest since Dec. 31 at 12,984.72.
Eight of the index's 10 main groups ended higher.
The overall financials group fell 0.5 percent as Moody's
warned that the oil price slump will strain the profitability at
Canada's largest banks.
Bank of Montreal BMO.TO , which will be the first of the
main six banks to report when it releases its results on
Tuesday, fell 0.7 percent to C$73.87.
Royal Bank of Canada RY.TO fell 1.1 percent to C$70.49,
while Bank of Nova Scotia BNS.TO ended down nearly 1 percent
at C$55.48.
Valeant Pharmaceuticals International Inc (N:VRX) VRX.TO suffered
its second consecutive session of steep declines, falling nearly
11 percent to C$104.16, pushing the healthcare sector lower.