TORONTO (Bloomberg) - Canadian stocks rose a second day, led by BCE Inc. and commodity producers, after the US government rescued Citigroup Inc. with cash and guarantees, boosting investor confidence and resource prices.

BCE gained the most since July as concern abated that Citigroup, one of the largest lenders to the phone company's $42.2 billion buyout, will renege on its financing commitments. Suncor Energy Inc. climbed the most in a month as oil surged. Goldcorp Inc. gained on higher bullion prices after a weaker US dollar enhanced the appeal of investing in commodities priced in the American currency.

"There's a relief rally," said Paul Gardner, a money manager at Avenue Investment Management in Toronto, which oversees about $81 million. "The Citigroup bailout solved the immediate concern about short term liquidity."

The Standard & Poor's/TSX Composite Index added 3.5 percent to 8,440.87 at 4.10pm in Toronto after gaining 5.6 percent on November 21. More than two stocks rose for every one that fell.

The S&P/TSX fell 9.9 percent last week to a five-year low and has slid 44 percent from its June peak as financial companies' credit and investment losses mounted and raw- materials and energy shares were dragged lower by tumbling energy, metal and grain prices.

Citigroup received a US government rescue package that shields the bank from losses on $306 billion of US home loans and injects $20 billion of capital, bolstering the stock after its 60 percent plunge last week.

BCE surged 9.8 percent to C$37.94 for its steepest gain since July 4. Citigroup, Deutsche Bank AG, Royal Bank of Scotland and Toronto-Dominion Bank have promised to provide $34.3 billion of loans, high-yield bonds, and equity to finance the record buyout of Canada's biggest phone company.

Crude oil for January delivery rose 9.2 percent, to $54.50 a barrel in New York. Oil has dropped 63 percent from its July 11 record. Copper futures rose six percent to $1.6735 a pound. Wheat rose the most in almost four weeks in Chicago.

Suncor Energy, the world's second-largest oil-sands mining company, gained 11 percent, the most since October 20, to C$22.95, the most since October 20. Canadian Natural Resources Ltd. rose 8.2 percent to C$45. EnCana Corp., Canada's biggest energy company by market value, climbed 4.8 percent to C$51. Petro-Canada climbed 10 percent to C$24.75.