The index extended earlier gains after the release of minutes from the last U.S. Federal Reserve policy meeting bolstered bets on a December interest rate hike.

The most influential gainer on the index was Canadian Pacific Railway Ltd (>> Canadian Pacific Railway Limited), which rose 5.6 percent to C$194.94 after the company made public a proposal to buy Norfolk Southern that it said could help it save $1.8 billion.

Its rival, Canadian National Railway Co (>> Canadian National Railway Company), advanced 2.3 percent to C$78.72.

The overall industrials group gained 2 percent, while the materials group rose 2.6 percent as gold miners rebounded despite only minor gains for bullion. [GOL/]

Goldcorp Inc (>> Goldcorp Inc.) gained 4 percent to C$15.83 and Barrick Gold Corp (>> Barrick Gold Corp.) added 3.7 percent to C$9.63.

"A bulk of the pressure from commodities and commodity stocks are probably behind us," said Sid Mokhtari, market technician and director of institutional equity research at CIBC World Markets. "We've already had a massive amount of selling."

Teck Resources Ltd (>> Teck Resources Ltd) gained 1 percent to C$6.29 after the largest producer of steel-making coal in North America said it would cut its work force by about 9 percent.

Mokhtari said investors may shuffle from commodity stocks and utilities into financials including insurance companies as the Fed gets closer to raising rates and the U.S. dollar continues to strengthen.

The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> settled up 119.58 points, or 0.90 percent, at 13,399.97.

Nine of the index's 10 main groups gained, with energy stocks slipping 0.25 percent.

Suncor Energy (>> Suncor Energy Inc.), the country's largest oil and gas producer, declined 2.8 percent to C$37.48 after it said 2016 capital spending will increase and production will slip.

Canadian Oil Sands Ltd (>> Canadian Oil Sands Ltd), which Suncor has offered to buy, fell 4.9 percent to C$8.98.

Those losses were offset by gains for pipeline companies. Enbridge Inc (>> Enbridge Inc) advanced 1.3 percent to C$50.28 and TransCanada Corp (>> TransCanada Corporation) gained 1.6 percent to C$43.14.

U.S. crude prices settled up 0.2 percent at $40.75 a barrel, while Brent added 1.5 percent to $44.24.[O/R]

(Editing by James Dalgleish and Tom Brown)

By Alastair Sharp