The financials group climbed 1 percent after the Bank of Canada said the recent liquidity strain at Home Capital Group Inc (>> Home Capital Group Inc) was specific to that company and that the broader alternative lending system works.
"I think people took some confidence from the comments suggesting the central bank sees Home Capital as an isolated occurrence and still considers the underlying financial system to be fairly robust," said Colin Cieszynski, senior market analyst at CMC Markets Canada.
Bank of Nova Scotia (>> Bank of Nova Scotia) rose 1.6 percent to C$77.85 and Toronto-Dominion Bank (>> Toronto-Dominion Bank) added 1.2 percent to C$65.06.
Valeant Pharmaceuticals International Inc (>> Valeant Pharmaceuticals Intl Inc) also added to the positive sentiment, jumping 9.4 percent to C$17.96 after saying it would sell its iNova Pharmaceuticals business for $930 million as part of a debt reduction plan.
The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> closed up 50.95 points, or 0.33 percent, at 15,423.09.
Six of its 10 main sectors slipped, although advancers outnumbered declining stocks by a ratio of 1.3 to 1.
Gold miners were among the heaviest weights, falling as investors assessed former FBI Director James Comey's testimony as containing no significant surprises.
Gold futures <GCc1> fell 1.0 percent to $1,277.1 an ounce, while Barrick Gold Corp (>> Barrick Gold Corp) fell 1.5 percent to C$22.45 and Goldcorp (>> Goldcorp Inc.) lost 2 percent to C$18.48. [GOL/]
Eldorado Gold Corp (>> Eldorado Gold Corp) slumped 9.4 percent to C$3.85 after Greece said it would take the miner to arbitration over a gold mining investment.
Base metals miners jumped as copper prices <CMCU3> advanced 2.2 percent to $5,746.50 a tonne after better-than-expected Chinese economic data allayed some concerns about oversupply. [MET/L]
First Quantum Minerals Ltd (>> First Quantum Minerals Limited) jumped 7.7 percent to C$11.75.
"It tends to have some big swings off commodity prices, that's not unheard of for them," Cieszynski said.
Teck Resources Ltd (>> Teck Resources Ltd) gained 3.6 percent to C$24.50, while Hudbay Minerals (>> Hudbay Minerals Inc) jumped 10.9 percent to C$7.40 after receiving a permit to move forward with a copper project in Arizona.
ECN Capital Corp (>> ECN Capital Corp) ended up 3 percent at C$3.76 after the commercial financing company said it would buy U.S.-based Service Finance Holdings LLC for C$410 million ($304 million) in cash.
(Reporting by Alastair Sharp; Editing by Dan Grebler and James Dalgleish)
By Alastair Sharp
Stocks treated in this article : Barrick Gold Corp
, Bank of Nova Scotia
, Valeant Pharmaceuticals Intl Inc
, Eldorado Gold Corp
, First Quantum Minerals Limited
, Goldcorp Inc.
, Hudbay Minerals Inc
, Home Capital Group Inc
, Toronto-Dominion Bank
, Teck Resources Ltd
, ECN Capital Corp