Energy stocks led a broad-based rally in Toronto Friday, propelled by record oil prices. The S&P/TSX composite index finished up 78.80 points or 0.91% at 8,747.09. Volume was 261.9 million share.

For the week, the index rose 1.8%.

Energy issues provided the muscle for the Toronto market jumping 1.4%, with the sector hitting a record 190.12 points on buoyant oil prices.

Crude closed above the US$50 a barrel mark in New York on Friday at a record a record US$50.12 a barrel, underpinned by continued supply fears in Nigeria despite a two-day truce in its conflict-torn, oil producing delta region.

All but one of the TSX’s 10 main subgroups ended higher, including a 2.13% rise by the health-care sector, while the industrials, telecoms and consumer discretionary groups all put in more than 1% gains.

Among health-care stocks, drugmaker Dimethaid Research’s shares continued their upward surge on news that Merck & Co. has pulled its arthritis drug off the market, raising hopes for Dimethaid’s Pennsaid arthritis ointment. Dimethaid shares soared 34¢ to 80¢ and was the day’s second most active stock with 11.5 million shares traded.

Elsewhere in the sector, Biovail gained $1.20 at $23, Vasogen added 26¢ to $5.94 and QLT was up $1.03 at $21.92.

The tech sector rose 0.95% as JP Morgan’s investment upgrade on chip equipment makers helped the group shrug off the previous day’s declines.

Materials gained 0.81% despite a retreat by its component gold stocks, which succumbed to profit-taking after sharp gains a day earlier.

Molson shares traded up 4¢ to $32.14 after the brewer confirmed that dreary summer weather in most of Canada and continuing problems in Brazil will cause it to report disappointing earnings. Molson also said it is contemplating a $200-million writedown on its Brazilian assets.

In other market news, the TSX said it will suspend trading in steelmaker Ivaco Inc. shares on Oct. 15 for failing to meet listing requirements.

The junior S&P/TSX Venture composite index rose 20.27 points or 1.24% to close at 1,649.65.

In New York, stocks rose sharply in heavy trading as software company PeopleSoft Inc. and chip-related stocks boosted the Nasdaq and Standard & Poor’s 500 indexes to their highest closes in about three months.

The Dow Jones industrial average closed up 112.38 points,or 1.11% at 10,192.65. The S&P 500 ended up 16.92 points or 1.52% at 1,131.50. The tech-heavy Nasdaq composite index closed up 45.36 points or 2.39% at 1,942.20.

For the week, the Dow ended up 1.45%, while the S&P advanced 1.93% and Nasdaq rose 3.34%. All three indexes turned in their highest weekly percentage gain in six weeks.

Shares of PeopleSoft rose more than 15% after its board decided to remove Craig Conway as president and chief executive, citing “a loss of confidence” in Conway.

Rival Oracle Corp., which has made a hostile bid for PeopleSoft, climbed 5%. Analysts said the dismissal of the PeopleSoft CEO increased the chances that Oracle’s takeover effort would succeed.

U.S. stocks also benefited from economic data on Friday.

U.S. factory growth stayed strong in September while construction spending the prior month hit a record high for a seventh straight month.