The benchmark index of the Toronto Stock Exchange surged more than 150 points on Thursday after the Bank of Canada suggested that the economy could outperform its projections in the second half of this year.

The S&P/TSX composite index jumped 154.83 points, or 1.4%, to close at 11,155.00.

Despite a small retreat in gold futures, the materials group gained 2.5% and the sub-gold index jumped 3.4%. December gold futures, the most actively traded contract, slipped 30 cents to end at US$996.80 an ounce on the Comex division of the New York Mercantile Exchange.

Shares of Yamana Gold Inc. surged 4.9% to $11.49 and Iamgold Corp. gained 5.1% to $14.76.

Barrick Gold Corp. added 3.2% a day after news of an expanded equity offering sent the company’s shares down 6.5%. On Thursday, Barrick’s stock closed at $40.99, up $1.28.

Also higher was Agnico-Eagle Mines Ltd., up $3.85, or 5.5%, to $73.50.

Energy shares rallied 2.4% as oil futures advanced and natural gas futures surged. On the New York Mercantile Exchange, crude for October delivery rose 63 cents, or 0.9%, to end at US$71.94 a barrel.

Shares of Suncor Energy Inc. gained $1.38, or 4%, to $36.15.

EnCana Corp. added 2.6% to $59.34 and Imperial Oil Ltd. shares rose 3.2% to $41.44.

Nexen Inc. gained 3.5% to $23.95.

Financial sector stocks finished up 0.5% on Thursday.

Gainers included Bank of Nova Scotia, up 2.5% to $44.96, and CIBC, up 1.5% to $62.40.

Lower for the day was Sun Life Financial Inc., off 1.6% to $30.11, and Intact Financial Corp., down 1.5% to $32.05.

Information technology stocks comprised the only main group to decline on Thursday, ending down 0.6%. Shares of Open Text Corp. dropped 2.9% to $37.91.

Junior companies on the Venture Exchange also experienced strong gains on Thursday. The Venture index added 13.84 points, or 1.1%, to close at 1,249.49.

The Canadian dollar gained nearly a quarter of a cent to close at US92.74¢.

Stocks south of the border were bolstered by promising economic data released on Thursday. The Labour Department said that new jobless claims fell more than expected to 550,000 last week and total unemployment rolls dropped.

The main U.S. stock market indices finished at their highest levels so far this year.

The Dow Jones industrial average gained 80.26 points, or 0.8%, to end at 9,627.48.

The S&P 500 index added 10.77 points, or 1%, to rest at 1,044.14.

The Nasdaq composite index rose 23.63 points, or 1.2%, to 2,084.02.