The Toronto Stock Exchange managed to recover from steep losses earlier on Wednesday to finish with another day of gains, led by strength in materials stocks.

The S&P/TSX composite index finished the day at 8,629.10, up 69.5 points, or 0.8%. The boost marked the seventh consecutive session of gains for the benchmark index.

The materials group surged 5.4% on Wednesday.

The sub-gold index soared a sharp 8.1% despite a drop in futures contracts for the precious metal. Gold for April delivery dipped US$27.70, or 3%, to close at US$889.10 an ounce on the Comex division of the New York Mercantile Exchange.

Shares of Barrick Gold Corp. jumped $3.24, or 8.9%, to $39.85 and Agnico-Eagle Mines Ltd. advanced $5.73, or 9.4%, to $66.69.

Goldcorp Inc.’s stock surged $3.33, or 9.2%, to $39.60 and Kinross Gold Corp. advanced 10.1% to $21.88.

Shares of Yamana Gold Inc. soared $1.12, or 11.2%, to close at $11.10.

Other stocks in the materials group retreated, including Potash Corp., down 2.7% to $96.30.

Stocks in the financials group bounced back from losses to finish up 1.2%.

Within the group, Sun Life Financial Inc. rose 3% to $23.47 and shares of Manulife Financial Corp. soared $1.09, or 7.9%, to $14.89.

ING Canada Inc.’s stock jumped $1.55, or 4.7%, to close at $34.70.

Lower for the day was CIBC, off 1.4% to $46.20, and Toronto-Dominion Bank, lower by 1.1% to $43.06.

Meanwhile, a drop in oil futures weighed down the energy group by 2.1%. Crude oil for April delivery fell US$1.02, or 2.1%, to finish at US$48.14 a barrel on the New York Mercantile Exchange.

Shares of Imperial Oil Ltd. fell $1.19, or 2.7%, to $42.24 and Suncor Energy Inc. tumbled $2.05, or 6.2%, to $31.20.

Also lower was Niko Resources Ltd., down 2.1% to $51.39 and Petro-Canada, off 1.7% to $29.97.

Junior companies on the Venture exchange also recovered from losses, helping the index finish up 12.59 points, or 1.5%, at 865.71.

The Canadian dollar surged US1.43¢ as the American dollar dropped lower. The loonie closed at US80.24¢.

In New York, U.S. stock markets finished the day higher as the Federal Reserve Board announced new efforts to improve the economy. It plans to spend up to US$300-billion over the next six months to buy long-term government bonds.

The Dow Jones industrial average gained 90.88 points, or 1.2%, to finish at 7,486.58.

The S&P 500 index added 16.23 points, or 2.1%, to 794.35.

The Nasdaq composite index gained 29.11 points, or 2%, to finish at 1,491.22.

IE