Stocks in Toronto closed higher today as the Royal Bank of Canada led a rally by banks. The Toronto Stock Exchange 300 composite index closed up 85.82 points at 7,512.46, its biggest gain since Jan. 31.

Advancing issues outpaced declining issues by 642 to 433 on volume of 156 million shares worth $2.58 billion. Overall, 11 of the TSE 300’s 14 sub-indexes were higher, led by a 2% gain in financial services and a 1% rise in the industrial products sector.

Royal Bank climbed $2.14, or 4.5%, to $49.85. Bank of Nova Scotia added $1.90, or 4%, to $47.85. A report by UBS Warburg reiterated its “buy”‘ rating on Royal Bank. UBS also said the earnings picture for Canada’s biggest bank is becoming clearer, particularly regarding the bank’s acquisitions in the U.S.

Bank of Montreal is expected to release its quarterly results on Tuesday, followed by Canadian Imperial Bank of Commerce on Thursday.

The industrial products sector fought off disappointing news from Nortel Networks Corp. which said it is going to delay the launch of a key telecommunications switch. Industrial products closed up 1% even though Nortel, which make up more than 5% of the TSE, fell 32¢, or 3.7%, at C$8.38. Instead, the sector followed Celestica Inc. which finished the session up $2.40, or 4.6%, at $54.60.

On the Canadian venture exchange trading was active. The S&P/CDNX Composite Index closed down 8.88 at 1103.70. A volume of 31.7 million shares worth 12.3 million dollars, changed hands, with 176 advances, 210 declines and 631 issues unchanged.

Strong home-sales data and better profit outlooks supported a rally that sent U.S. indexes firmly into higher territory. The Dow Jones industrial average rose 177.56 points to 10,145.71. The Nasdaq composite index finished the day up 45.34 points at 1,769.88.