Surging commodity prices powered Toronto stocks higher Friday as financial issues lagged in a volatile session.

The S&P/TSX composite index closed up 430.63 points, or 5.57%, at 8,155.39. Earlier in the day, the benchmark hit a low of 7647.11.

But even with Friday’s broad rally, the TSX was still down 9.9% for the week.

Every one of the 10 main subgroups of the S&P/TSX composite index rose by the end of the day.

The energy group rose 9.9% as oil prices rose 1%.

EnCana Corp jumped 10.9% to end at $48.66. Petrobank Energy soared 24.3% to $21.75.

The resource-heavy materials group rose 19%, as the gold sub-index surged more than 5%.

Barrick Gold rose 32.5% to close at $35.50. Agnico-Eagle Mines surged 21.2% to $41.80.

Financials, which were battered lower almost all day, recovered to finish 0.34% higher, but Toronto-Dominion Bank, which warned of credit losses earlier in the week, fell 5.2% to end at $41.30.

The junior S&P/TSX Venture composite index gained 11.88 points, or 1.72%, to finish at 703.83.

The Canadian dollar gained almost 1¢ to close at US78.30¢, after the annual inflation rate fell to 2.6% in October from the previous month’s 3.4%.

In New York, U.S. stocks surged on reports that U.S. president-elect Barack Obama will name New York Federal Reserve Board president Timothy Geithner as his Treasury Secretary.

The Dow Jones industrial average jumped 494.37 points, or 6.55%, at 8,046.42. The S&P 500 shot up 47.59 points, or 6.32%, at 800.03. The Nasdaq composite index gained 68.23 points, or 5.18%, at 1,384.35.

Citigroup Inc. shares plunged 20% to US$3.77, as the bank’s uncertain fate continued to drive the stock’s precipitous fall.

IE