CANADA STOCKS-TSX rallies as energy shares move beyond Venezuela oil supply threat

By Fergal Smith

TORONTO, Jan 8 (Reuters) - Canada's main stock index rose on Thursday as higher oil prices lifted energy shares, with the index recouping much of the previous day's decline.

The S&P/TSX Composite Index .GSPTSE ended up 243.15 points, or 0.8%, at 32,378.64, moving back in reach of the record closing high it posted on Tuesday.

"Energy companies are bouncing back today, looking past that initial shock of the U.S. replacing some little bit of Canadian oil with Venezuelan oil," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.

The U.S. Senate voted to advance a resolution that would bar President Donald Trump from taking further military action against Venezuela without congressional authorization, even as Trump said U.S. oversight of the troubled nation could last years.

The energy sector .SPTTEN rose 1.9%, with Cenovus Energy < CVE.TO> up 3.4%. The price of oil CLc1 settled 3.2% higher at $57.76 a barrel, after two straight days of declines, as investors assessed developments in Venezuela and worried about supplies from Russia, Iraq and Iran.

The price of gold also rose, climbing 0.6%. The materials sector, which includes metal mining shares, added 0.8%.

The consumer discretionary .GSPTTCD and consumer staples .GSPTTCS sectors both rose 1%, while industrials .GSPTTIN gained 1.3% as railroad stocks rebounded.

MDA Space Ltd MDA.TO was a standout. Its shares climbed 6.6% after the space and defense technology company said it was selected by the U.S. Missile Defense Agency for SHIELD, a program to expand the country's homeland missile defense.

Just two of the 10 major sectors ended lower, including technology, which dipped 0.1%.