TORONTO (Reuters) - Toronto's main stock index rose over two percent yesterday in a broad-based rally as investors were emboldened by a $1 trillion emergency rescue package out of Europe aimed at containing Greece's debt crisis.

Energy producers were among the top gainers as the price of US crude oil rallied more than two percent on the back of the aid plan.

Canadian Natural Resources rose 2.8 percent to C$73.98, while Petrobank Energy and Resources Ltd. gained 4.3 percent to C$49.20. The energy group as a whole was up 2.8 percent on the day.

"A lot of those stocks had pulled back just based on worries about longer-term economic growth prospects," said Gareth Watson, portfolio adviser with ScotiaMcLeod.

"If Europe is in trouble...they make up 25 percent of the world's economy, so that means that the global economy is in trouble."

Toronto Stock Exchange's S&P/TSX composite index ended up 255.47 points, or 2.18 percent, at 11,947.9. It topped the 12,000 mark briefly.

All 10 groups of Toronto's main index were higher, helping to reverse some of last week's steep losses, which had taken the index to a negative position on the year. Monday's gains pushed it back into positive territory.

The materials group, home to miners, was up 1.9 percent, with Teck Resources rising 8.8 percent to C$39.53 and First Quantum Minerals gaining 5.7 percent to C$73.46. Fertilizer producer Potash Corp added 1.7 percent to C$106.27.

Gold miners limited the gains in the sector, however, as the better prospects for the European economy undercut safe haven buying of gold. Agnico Eagle fell 1.2 percent to C$64.76, while Kinross Gold slid 1.4 percent to C$17.85.

In the financial sector, Toronto-Dominion Bank rose 2.6 percent to C$73.77. Bank of Montreal advanced 2.5 percent to C$C$60.47.

The US markets also saw some hefty increases, following rallies in Europe and Asia after the European Union and International Monetary Fund agreed to the rescue package.

While the gains on the TSX were strong, the volume was not actually that high and a lot of investors still appeared hesitant to wade back into the market after last week's big sell-off, said Irwin Michael, portfolio manager at ABC Funds.