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TSX rises on gains in Suncor Energy, US debt deal cheer

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June 2 (Reuters) - Canada's main stock index opened higher on Friday, as investors cheered the passing of the U.S. debt ceiling bill, while shares of Suncor Energy surged as the country's second-biggest oil producer revealed its cost-cutting plans.

At 9:59 a.m. ET (13:59 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was up 140.05 points, or 0.71%, at 19,812.3.

Suncor Energy Inc (SU.TO) rose 1.7%, on report that the company will cut 1,500 jobs by the end of this year as it aims to reduce costs and improve its financial performance.

It sent the energy sector (.SPTTEN) 1.7% higher, further tracking an uptick in oil prices.

"It appears that some activist investors are trying to make Suncor more efficient over the long term by getting them to cut costs and that's good to see for investors," Greg Taylor, chief investment officer at Purpose Investments, said.

Bucking the trend, Canaccord Genuity Group Inc (CF.TO) tumbled 7.0% to a five-month low, after the consortium led by the investment firm said its C$1.13 billion ($842 million) take-private offer may not result in a deal.

The TSX is set for its sixth straight week of declines if losses hold, its longest weekly losing streak in over a year.

A disappointing streak of bank earnings coupled with a weak demand outlook for commodities have been a concern for investors, Taylor added.

Among other movers, TD Securities upgraded Lundin Mining Corp (LUN.TO) to "buy" rating from "hold", sending shares of the base metals miner up 4.4%, its best day in over two months.

Meanwhile, home prices in Greater Toronto Area (GTA) increased in May from April and sales rose sharply, the data by Toronto Regional Real Estate Board (TRREB) showed, adding to evidence that the housing market has turned a corner.

The real estate sector (.GSPTTRE) rose 0.7%.

Reporting by Johann M Cherian in Bengaluru; Editing by Shweta Agarwal
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