Strength in energy and commodities led hefty gains on the Toronto Stock Exchange on Monday, pulling the benchmark index up more than 5% after last week’s disappointing performance.

The S&P/TSX composite index rallied 450.09 points, or 5.5%, to end the day at 8,567.12. All 10 of the TSX main groups finished higher.

The materials group gained 9.2%, helped by strength in metal prices. Gold for February delivery rose US$17.10, or 2.3%, to end at US$769.30 an ounce on the New York Mercantile Exchange.

The higher price for bullion gave a boost to TSX mining companies such as Kinross Gold Corp., up 9.3% to $18.87, Goldcorp Inc., up 8.8% to $30.30 and Barrick Gold Corp., up 7.1% to $34.35.

Other gainers included Agnico-Eagle Mines Ltd., up 8% to $39.42, and Teck Cominco Ltd., whose B-class shares rose 8.1% to $4.25.

The sub-gold index rose 6.2%, and the diversified metals group soared 11%.

Potash Corp. shares powered ahead 14.1% to $76.99 and Agrium Inc. shares rose a sharp 8.3% to $33.35.

Meanwhile, energy companies benefited from reports that OPEC may cut production in an effort to boost oil prices. Crude oil for January delivery surged US$2.90, or 7.1%, to end at US$43.71 a barrel on the New York Mercantile Exchange.

The energy group rose 7.5%, including gains by shares of EnCana Corp., up $4.75, or 9.3%, to close at $55.61 and Suncor Energy Inc., higher by $1.44, or 6.6%, to end at $23.30.

Also higher was Canadian Natural Resources Ltd., up 7.3% to $42.20 and Husky Energy Inc., up 13.2% to close at $31.38.

Shares of Oilexco Inc. soared 34.5% on reports that the oil explorer has been put up for sale. Its shares closed at $1.95 on the TSX.

The financial group rose 4.2%, featuring gains by all of the Big Five banks.

Particularly strong were CIBC shares, up 7.1% to end at $53.27 and Toronto-Dominion Bank, up 5% to $45.55.

Royal Bank of Canada shares increased 3% to $37.50.

The junior S&P/TSX Venture composite index gained 13.3 points, or 1.9%, to finish at 697.61.

Higher oil prices helped the Canadian dollar gain more than a cent against the greenback. The loonie closed at US79.74¢.

South of the border, stocks rallied on U.S. President-elect Barack Obama’s pledge to pump widespread new investment into infrastructure to revive the economy.

In New York, the Dow Jones industrial average finished at its highest point in a month. It ended at 8,934.18, up 298.72 points or 3.5%.

The S&P 500 index jumped 33.63 points, or 3.8%, to 909.7 and the Nasdaq composite gained 62.43 points, or 4.1%, to 1,571.74.

IE