Toronto stocks closed strongly higher on Thursday, rebounding from yesterday’s heavy losses, on optimism over a US$825 billion stimulus package to revive the troubled U.S. economy.

The S&P/TSX composite index closed up 191.25 points, or 2.2%, to 8,879.61.

Nine of the 10 TSX main groups finished higher.

The benchmark index clawed its way back from its 2009 low recorded earlier in the session.

Financials group moved 0.7% higher with Power Corp. gaining 82¢ to $22.32 and Manulife Financial headed up 70¢ to $22.93.

The energy sector gained almost 2% even oil prices fell more than 5% on worries world energy demand will keep shrinking this year.

Crude fell US$1.88 to settle at US$35.40 a barrel on the New York Mercantile Exchange.

In Toronto, EnCana Corp. rose $2.07 to $56.70 while Suncor Inc. climbed 88¢ to $47.58.

Shaw Communications Inc. shares rose 90¢ to $20.85. The telecommunications company reported its first-quarter earnings increased 10% to $123.1 million compared with a year ago.

Tech heavyweight Research In Motion gained $5.63 or 10% to $62.

The junior S&P/TSX Venture composite index gave up 5.23 points, or 0.62%, to close at 844.30.

The Canadian dollar slipped below the US80¢ level Thursday. The loonie closed at US79.90¢, down 0.21 of a cent from Wednesday.

In New York, the Dow Jones industrials finished up 12.35 points, or 0.2%, to 8,212.49 after falling more than 200.

The Nasdaq composite index was up 22.2 points, or 1.5%, to 1,511.84. The S&P 500 added 1.12 points, 0.1%, to 843.74 as

J.P. Morgan shares fell $1.57 to US$24.34 after it said it earned US$702 million, or 7¢ a hare, in the October-December quarter.

Citigroup shares fell 70¢ to US$3.83 as investors prepared for dismal fourth-quarter results on Friday.

IE