TORONTO (Reuters) — The Toronto Stock Exchange’s main index ended sharply higher yesterday on a rebound in oil prices and firmer resource issues.The S&P/TSX composite index closed up 158.91 points, or 1.3 percent, at 12,678.81. The TSX gained 1.6 percent for the week.

All but one of the index’s 10 main groups were higher, led by a charge in the energy and materials sectors, which climbed 2.8 percent and 2.1 percent respectively. Utilities was the only losing group, down 0.4 percent.

People are definitely “interested in buying again,” said Julie Brough, assistant vice-president at Morgan Meighen & Associates.

“There’s a lot of cash out there,” she said. “That’s the reality of these markets. There’s so much liquidity in the system that every time you get a bit of a pullback the cash starts flooding in to find a home.” Top energy companies climbed as the price for US crude oil bounced higher on worries that OPEC would deepen its supply cuts and on forecasts for colder temperatures in the United States, prompting increased demand for heating oil.

Suncor Energy gained $3.58, or 4.4 percent, to C$85.52, and EnCana Corp. rose C$1.40, or 2.7 percent, to finish at C$54.05.

Materials shares were up as the price of gold surged, boosting gold miners. Barrick Gold rose 20 Canadian cents, or 0.6 percent, to C$34.11, and Kinross Gold Corp. gained 53 Canadian cents, or 3.9 percent, to C$14.06.

While yesterday’s surge was a bit of a surprise it’s a sign that normal market activity will resume, said Fred Ketchen, director of equity trading at ScotiaMcLeod.

“Markets always go down too far and then when they recover they always go up too high,” he said.