TORONTO (Reuters) - The Toronto Stock Exchange's main index logged its best day of the month yesterday, rising sharply in a broad rally led by financial and materials issues.

The materials sector climbed 2.8 percent, helped by a jump in Potash Corp of Saskatchewan Inc after the stock won an analyst upgrade. Potash was up C$5.62, or 5.1 percent, at C$115.32.

The battered financials sector, the biggest group on the index, gained 3.2 percent, helped by a boost in sentiment a day after Bank of Montreal's positive 2008 outlook.

BMO rose C$2.80, or 4.8 percent, to C$60.75, adding to a 4.6 percent gain on Tuesday.

Comments by a senior Federal Reserve official boosted investor expectations of a US interest rate cut also added buoyancy to the TSX.

The S&P/TSX composite index closed up 263.03 points, or 1.97 percent, at 13,632.15 with all of the TSX's 10 main groups higher.

It was the biggest one-day gain since the end of October.

The index has tumbled throughout November, mostly due to worries over the health of the US economy.

The industrials sector gained 2.2 percent as Bombardier Inc. said it plans to increase production of its regional jets and reported a rise in quarterly profit.

The plane and train maker was up 28 Canadian cents, or 5.1 percent, at C$5.76.

The tech sector moved up 1.3 percent with the help of BlackBerry maker Research In Motion, which finished up C$4.76, or 4.1 percent, at C$119.76.

On Tuesday, two top Russian mobile firms said they would start selling BlackBerry phones in Russia.

Elsewhere, pharmaceutical company QLT Inc gained after it said it would stop investing in new products and technology in favor of reviewing all strategic alternatives, including the sale of some or all of the company.

QLT jumped 92 Canadian cents, or 23.7 percent, to C$4.80.