The Toronto stock market finished strongly higher on Thursday as higher commodity prices boosted resource issues.

The S&P/TSX composite index surged ahead 115.26 points, or 0.84%, at 13,849.80.

The materials sector rose 2.4%, helped by a rally in gold prices and a surge in units of Fording Canadian Coal Trust after it said it was weighing its options, including the sale of the company.

The coal producer jumped $4.65, or 13.5%, to $39.10.

Teck Cominco, which has a nearly 20% stake in Fording, rose $1.61, or 4.4%, to $38.11.

The energy sector was up 1.7% while the price of oil climbed $2.74 to US$90.23 a barrel on supply concerns and weakness in the U.S. dollar.

Canadian Natural Resources rose $1.60, or 2.4%, to $68.09 and Husky Energy gained 81¢, or 2%, to $42.10, the day after it said it would form a joint venture with British oil major BP Plc.

The financial sector remained the lone group in negative territory, hurt by CIBC’s decline after the bank said its hedged exposure to the subprime market could result in significant losses. CIBC shares fell $4.69, or 5.4%, to $82.40.

Bank of Nova Scotia rose 21¢, or 0.4%, to $52.36 after it reported an increase in fourth-quarter earnings but gave a cautious outlook for next year.

The junior S&P/TSX Venture composite index gained 24.15 points, or 0.9% to finish at 2,716.37.

The Canadian dollar gained 0.6 cent to close at US99.09¢.

On Wall Street, U.S. stocks surged on on optimism that a plan announced by President Bush to stem U.S. home foreclosures would keep the economy from sliding into a recession.

Bush said as many as 1.2 million homeowners could benefit from the mortgage assistance plan, which includes an interest- rate freeze for some of the most distressed borrowers.

The Dow Jones industrial average rocketed ahead 174.93 points, or 1.30%, to end at 13,619.89. The S&P 500 climbed 22.33 points, or 1.50%, to 1,507.34. The Nasdaq composite index soared 42.67 points, or 1.60%, to 2,709.03.