A surge in energy and materials stocks pulled the benchmark index of the Toronto Stock Exchange up more than 150 points on Tuesday.

The S&P/TSX composite index soared 163.79 points, or 1.4%, to close at 11,495.83.

Gains in commodity prices boosted the materials group by 2.5% on Tuesday. Gold for December delivery rose US$5.20, or 0.5%, to finish at US$1,006.30 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index finished up 1.6%.

Shares of Goldcorp Inc. gained $1.19, or 2.7%, to close at $45.44.

Iamgold Corp. jumped 5.2% to $16.20, and Ivanhoe Mines Ltd. soared 4.1% to $13.58.

Also higher was Potash Corp., up 4.5% to $100.79, and Agrium Inc., up 2.2% to $54.78.

Oil futures jumped 3% on Tuesday, boosting the energy group by 2.1%. Crude oil for October delivery finished up US$2.07, or 3%, at US$70.93 a barrel on the New York Mercantile Exchange.

Suncor Energy Inc. rose 3.5% to $38.65, and Canadian Natural Resources Ltd. gained 2.7% to $73.04.

Shares of Nexen Inc. advanced 3.8% to $25.50 and Imperial Oil Ltd. gained 1.7% to $42.43.

The financials group gained 1.2% on Tuesday.

Bank of Nova Scotia’s stock surged $1.80, or 3.9%, to close at $48.50.

CIBC shares rose 2.5% to $65.45 and Bank of Montreal added 1.3% to $52.85.

Intact Financial Corp.’s stock jumped $1.18, or 3.7%, to $33.28.

Lower for the day was Manulife Financial Corp., down 2.4% to $21.34.

A late-day surge in junior stocks helped the S&P/TSX Venture composite index finish with strong gains. It closed at 1,269.35, up 15.52 points, or 1.2%.

The loonie surged by more than a cent on Tuesday, to close at US93.34¢.

Markets in New York were bolstered by a report showing stronger-than-expected U.S. retail sales in August, and a speech by Federal Reserve Chairman Ben Bernanke, who said the recession is likely over.

The Dow Jones industrial average advanced by 56.61 points, or 0.6%, to end at 9,683.41, its highest closing level since early October.

The S&P 500 index also finished at its highest point since the beginning of October, gaining 3.29 points, or 0.3%, to 1,052.63.

The Nasdaq composite index gained 10.86 points, or 0.5%, to close at 2,102.64.

IE