TORONTO (Reuters) - Toronto's main stock index ended at its highest closing level in more than a month yesterday as bank shares got a boost after Britain's Barclays Bank said it had a strong start to the year.

Toronto's financial group - home to banks and insurance companies and heavily weighted on the key index - added to a string of recent gains after Barclays became the latest bank to say it began 2009 on a strong footing. That echoed a refrain heard from executives at several major US banks last week.

Shares of insurer Manulife Financial, the biggest contributor to the index's gain, rose 5.3 percent to C$13.49, while Toronto-Dominion Bank jumped 2.7 percent to close at C$42.31.

"Certainly in Canada you're seeing the banks lead the charge and some of the insurance companies that were beaten down participating very nicely as well," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"There seems to be an improving level of confidence in the financials, and whether that gets sustained in the weeks to come remains to be seen, but this is a promising start."

The financial sector, up a staggering 24.8 percent in the past week, led all the main index's sectors higher with a 2.3 percent gain in the latest session. The energy group chipped in with a one-percent gain.

The S&P/TSX composite index ended the session up 83.32 points, or one percent, at 8,386.71, its highest closing level since February 13. It was the first time since February 9 that the index has closed higher in five straight sessions.

Eight of the TSX index's 10 sectors rose.

Energy stocks started the session lower due to an early drop in oil prices, but a turnaround in prices for the key Canadian commodity allowed it to rebound to a higher close.

Oil prices rose to above $47 a barrel as the global equity rally outweighed OPEC's decision over the weekend not to cut production further.

Canadian Natural Resources shares ended up 3.46 percent at C$44.01, while EnCana Corp. rose 0.93 percent to C$50.05.

Earlier this month the TSX fell to its lowest level in more than five years after a string of big sell-offs that were due largely to the deteriorating global economy and waves of data that showed the Canadian economy was getting hit hard.

Canadian consumer price index data for February, due out on Thursday, and the January retail sales report on Friday, both which are likely to show further weakness in the economy, could help boost the TSX if they come in ahead of expectations.

"I think pretty much people have discounted a really dismal scenario," Mr. Picardo said. "Most of the bad news is pretty much factored in, so if the data is incrementally positive it might sort of help positive sentiment even more."