A rally in banking shares pushed the benchmark index of the Toronto Stock Exchange ahead nearly 150 points on Wednesday, offsetting a weak showing by energy and materials stocks.

The S&P/TSX composite index rose 146.24 points, or 1.09%, to close at 13,503.80.

Seven of the 10 TSX main groups moved higher, including financials, which surged 5.9% after Wells Fargo & Co., the fifth-biggest U.S. bank, posted results that eased investor fears about mortgage losses.

In Toronto, Toronto-Dominion Bank shares rose $4.06, or 7.6%, to close at $57.57. National Bank of Canada added $3.89, or 8.5%, to end at $49.64.

The energy and materials groups fell 2.09% and 1.26%, respectively, as oil prices eased and also reduced the appeal of gold as a hedge against inflation.

Crude for August delivery closed down US$4.14, or 3%, at US$134.60 a barrel on the New York Mercantile Exchange, the lowest since June 25.

EnCana Corp dropped $2.62, or 3.15%, to $80.60. Agnico-Eagle Mines fell $2.59, or 3.4%, to $73.23.

The biggest net gainer of the day was BlackBerry maker Research In Motion. RIM shares jumped $4.79, or 4.5%, to $111.00

The junior S&P/TSX Venture composite index slipped 1.32 points, or 0.06%, to 2,308.76.

The Canadian dollar added 0.01¢ to close at US99.78¢.

In New York, U.S. stock rallied as unexpectedly strong results from Wells Fargo & Co. and falling oil prices relieved worries about the impact of the credit crisis on the U.S. financial sector.

The Dow Jones industrial average 276.74 points, or 2.52%, to 11,239.28, while the S&P 500 gained 30.45 points, or 2.51%, to 1,245.36. The tech-heavy Nasdaq composite index jumped up 69.14 points, or 3.12%, to 2,284.85.