TORONTO (Reuters) - The Toronto stock market's main index retraced its steps to finish higher yesterday as robust commodity shares helped offset fears of more fallout from US credit market woes.

Worries over the slumping US housing sector plagued the index, sending it into negative territory in the afternoon before it was bounced back up.

With only three sectors in positive territory, energy and materials shares provided the bulk of the support as gold and oil prices also moved higher.

The S&P/TSX composite index closed up 111.53 points, or 0.84 percent, at 13,459.77. Consumer staples was the other sector to end higher.

On the downside, financials lost 1.2 percent after US mortgage finance provider Freddie Mac posted a record quarterly loss in what it said was "an extremely difficult year," causing investors to worry about the health of the US economy.

In Toronto, Canadian Imperial Bank of Commerce was down C$2.50, or 2.9 percent, at C$83.80, and National Bank of Canada gave up 34 Canadian cents, or 0.7 percent, to C$51.46.

Also weighing on sentiment, minutes from the US Federal Reserve, released during the afternoon, showed support for the October interest rate cut was a "close call" among policy-makers, dimming hopes for a rate cut at the Fed's next meeting.

The lightweight health-care sector gave up 3.8 percent as Biovail Corp shed more than 11 percent after the US Food and Drug Administration dashed hopes for a quick approval of a new version of its bupropion anti-depressant treatment. Biovail finished down C$1.85 at C$14.30.

The materials group, home to resource shares, led the way up, gaining 3.8 percent, while the price of gold rallied to $793.90 an ounce. Barrick Gold gained C$3.26, or 8.5 percent, to C$41.53 while Kinross Gold was up C$1.11, or 6.7 percent, to C$17.72.

Heavyweight energy shares also helped pull the index higher as the sector rose 1.9 percent. Crude jumped to hit a high of $98.62 a barrel before settling at $98.03, helped by concerns over tight supply ahead of winter.

Suncor Energy was among the day's biggest advancers by weight, up C$3.09, or 3.1 percent, to C$103.00. Elsewhere in the sector, Canadian Natural Resources rose C$2.50, or 3.6 percent, to C$73.00.

In other equities news, Quebecor World Inc slid 16 Canadian cents, or 5.5 percent, to C$2.74 after it said it was withdrawing a refinancing plan announced last week.