TORONTO (Reuters) - Toronto's main stock index surged yesterday as a bounce in oil prices and an offer by Total SA to buy UTS Energy Corpled the index higher for a second straight session.

UTS shares jumped 63 percent to C$3.44 after French oil major Total agreed to buy UTS for C$1.5 billion in cash, twice the amount it offered for the Canadian oil sands developer 18 months ago.

"The bid for UTS by Total is something that has given investors some more confidence that the future of the oil sands is more intact," said Michael Sprung, president of Sprung & Co. Investment Counsel.

As well, US crude futures topped $74 a barrel after six straight sessions of declines, and helped send the energy group up 2.77 percent. Suncor Energy, the country's biggest oil company, rose 4.1 percent to C$32.50 while Canadian Natural Resources added 2.9 percent to C$35.82.

The Toronto Stock Exchange's S&P/TSX composite index finished up 197.10 points, or 1.76 percent, at 11,397.27.

All 10 main sectors advanced as the TSX added strongly to its gains in the second half of the session and closed less than one point below its intraday high.