Toronto stocks rallied Wednesday, after a volatile session, drawn forward by the energy sector and the financials group

The S&P/TSX composite index closed up 80.69 points, or 0.78%, or 10,425.78, after spending much of the day lower and hitting an intra-day bottom of 10,205.00

Trading on the senior exchange was robust, with a volume of 305 million shares.

The energy index closed 3.52% higher, despite a drop in the price of oil. A barrel of light crude settled at US$62.41, down $1.10, on the New York Mercantile Exchange. The U.S. Department of Energy reported crude oil inventories rose 5.55 million barrels last week.

EnCana Corp. gained $5.49, or 9.78%, to $61.65.

Husky Energy Inc. reported earnings of $556 million or $1.31 per share for June-September. Its shares rose 70¢ to $54.80, a gain of 1.29%.

The financials sector was up 0.67%.

Royal Bank announced it would take a fourth-quarter pre-tax charge of US$500 million US in anticipation of penalties arising from an Enron-related lawsuit. RBC rose 89¢, or 1.07%, to $83.80.

The Canadian dollar advanced 0.28 of a cent to US85.14¢.

The junior S&P/TSX Venture composite exchange fell 42.39 points, or 2.08%, to 1.992.82.

In New York markets closed higher on lower energy prices and a U.S. Federal Reserve report that suggested recent economic growth has been gradual, somewhat easing investors’ concerns over inflation.

The Dow Jones industrial average gained 128.87, or 1.25%, to 10,414.13. The S&P500 index rose 17.61, or 1.49%, to 1,195.75, while the Nasdaq composite index advanced 35.24, or 1.71 %, to 2,091.24.