Surging financial issues helped pull the Toronto Stock Exchange’s main index strongly higher on Monday.

The S&P/TSX composite index closed up 244.08 points, or 1.91%, at 13,019.72 with all of its 10 main sectors higher.

A sweetened bid for U.S. investment bank Bear Stearns Cos. from J.P. Morgan Chase & Co. helped boost sentiment for the TSX financial sector, which climbed 3%.

CIBC was up $2.54, or 4%, at $66.80, while Bank of Montreal added $2.25, or 5.1%, to $46.76.

Stronger resource issues also helped lift the TSX, as the sector bounced back from sharp declines last week amid a selloff in commodities.

The resource-laden materials group was up 0.7%.

Potash Corp of Saskatchewan surged $6.44, or 4.4%, to $154.01 and Inmet Mining was up $1.28, or 1.7%, at $76.60.

The heavyweight energy sector gained 0.8%, with Petro-Canada up 64¢, or 1.5%, at $43.41 and Canadian Natural Resources ahead 84¢, or 1.3%, at $67.25.

Crude oil for May delivery fell 98¢ to settle at US$100.86 a barrel on the New York Mercantile Exchange.

On the downside, the gold subindex gave up 1.6% with the price of bullion lower.

Gold for April delivery fell US$1.30 to end at US$918.70 an ounce on the Nymex.

In Toronto, Agnico-Eagle Mines was off $1.64, or 2.4%, to $67.44 and Kinross Gold dipped 89¢, or 4%, to $21.48.

Among individual stocks, Biovail Corp. agreed Monday to pay US$10 million to settle with the U.S. Securities and Exchange Commission. Biovail shares were up 26¢ to $12.04.

Cott Corp. shares added 49¢, or 26.5%, to $2.34. The soft drink maker announced it has parted ways with CEO Brent Willis after it lost US$76.8 million in the fourth quarter.

The junior S&P/TSX Venture composite index gained 19.42 points, or 0.79%, to finish at 2,481.75.

The Canadian dollar moved up 0.53 of a cent to US98.24¢.

In New York, U.S. stocks rallied after the raised buyout offer for Bear Stearns and data that fueled hopes for a turnaround in the U.S. housing market.

J.P. Morgan Chase lifted its offer for Bear Stearns to US$10 a share from US$2, helping alleviate concerns that other investment banking shares could tumble.

The Dow Jones industrial average climbed 187.32 points, or 1.52%, to finish at 12,548.64. The S&P 500 ended up 20.37 points, or 1.53%, at 1,349.88.

The tech-heavy Nasdaq composite index soared 68.64 points, or 3.04%, to close at 2,326.75.