Roger Biduk writes:

Dramatic moves to rescue the U.S. financial sector sent the Toronto stock market soaring more than 800 points Friday in one of the biggest one-day advances in its history.

The S&P/TSX composite index charged ahead 848.42 points or seven per cent to 12,912.99, the largest one-day percentage gain since Oct. 21, 1987, when the markets gained nine per cent two days after an 11 per cent plunge.

The market was helped along by solid advances in bank and insurance stocks as investor confidence in the financial system returned following a plan to rescue U.S. financial companies from billions of dollars in bad debt.

The TSX also benefited from advancing oil prices, which sent energy shares higher.

It was a huge turnaround from just two days ago when pessimism drove the TSX to its lowest level in two years, following the weekend bankruptcy of investment bank Lehman Brothers and the subsequent government rescue of insurance giant AIG.

The TSX actually ended the week with a gain of 142 points or one per cent from the close on Sept. 12 but the Toronto market is still down almost 15 per cent from its most recent high in mid-June.
The TSX also benefited from advancing oil prices, which sent energy shares higher.
The TSX Venture Exchange improved by 71.34 points to 1,549.22 while the Canadian dollar was up 1.06 cents to 95.24 cents US.

In Toronto, the financial sector was up 5.14 per cent with TD Bank (TSX:TD) ahead $5.69 to $64.94 and Royal Bank(TSX:RY) jumping $3.44 to $51.43.

The TSX energy sector improved 8.14 per cent as the October crude contract on the New York Mercantile Exchange rose $6.67 to US$104.55 a barrel, after closing at barely US$91 on Tuesday,despite recent data showing demand for energy will likely remain weak as global economies slow down.

EnCana Corp. (TSX:ECA) gained $4.03 to $75.75 and Canadian Natural Resources advanced $9.31 to $87.31.

The base metals sector ran ahead 10.4 per cent with Teck Cominco Ltd. (TSX:TCK.B) gaining $2.62 to $38 and Inmet Mining Corp. (TSX:IMN) up $5.56 to $59.56.

Gold slumped Friday after big gains earlier in the week as investors sought a safe-haven from the turmoil on stock and bond markets. The near-month bullion contract was down $32.30 to US$864.70. But the TSX gold sector rose five per cent and Goldcorp Inc. (TSX:G) moved ahead $3.89 to $34.50.

Other big Toronto stocks contributing to the Friday rally included Research In Motion (TSX:RIM), ahead $13 or 13.47 per cent to $109.50, Bombardier Inc. (TSX:BBD.B) 52 cents to $6.62 and Potash Corp. (TSX:POT) up $15.98 or 9.5 per cent to $182.98.

On the TSX, advances beat declines 1,214 to 409 with 175 unchanged as 814.1 million shares traded worth $17.7 billion.

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Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.