TORONTO (Reuters) - Toronto's main stock index finished at a 2009 closing high yesterday as heavyweight energy and financial issues led a broad rally.

All but one of the TSX's 10 main sub-groups ended higher, with the energy sector adding 0.86 percent and financials gaining 1.32 percent.

The sole decliner was the resources-laden materials group, which slipped 0.87 percent.

"This is typically supposed to be a really volatile month and it's proved to be quite the contrary, actually," Elvis Picardo, vice-president of research at Global Securities in Vancouver, said of the gains made in recent sessions.

"There continues to be a lot of confidence in Canadian banks."

Indeed, banks and other financial institutions were among the winners yesterday: Canadian Imperial Bank of Commerce rose 1.4 percent to end at C$63.85. Fairfax Financial rose 3.8 percent to close at C$385. Insurance group Sun Life Financial rose 2.9 percent to end at C$31.23.

Losers included some of the country's top mining names. Royal Gold fell 3.1 percent to finish at C$50.39. Barrick Gold gave up 1.6 percent to close at C$40.51.

The S&P/TSX composite index rose 78.81 points, or 0.7 percent, to close at 11,332.04.

Gavin Graham, director of investments at BMO Asset Management, said that large equity offerings, such as Barrick's $4 billion deal last week, are helping to build optimism - despite continuing job losses.

"The risk appetite has returned," he said. "Whether that's justified is a completely different question."

Data yesterday showed Canadian industries ran at 67.4 percent of capacity in the second quarter, the lowest rate on record as the recession forced every sector except food manufacturing to curb output.

The two-year bond fell five Canadian cents to C$99.56 to yield 1.231 percent, while the 10-year bond fell 43 Canadian cents to C$103.12 to yield 3.370 percent. The 30-year bond lost 85 Canadian cents to C$118.40 to yield 3.906 percent.

Most Canadian bonds outperformed their US counterparts, except for the two-year issue.

The Canadian 10-year bond yield widened slightly to 5.1 basis points below its US counterpart, compared with 2.1 basis points on Friday.