TORONTO (Bloomberg) - Canadian stocks rose a third time in four days, led by metals and energy producers, as commodity prices rallied on speculation bailouts and economic stimulus measures around the world will boost demand.

Goldcorp Inc. gained 12 percent as bullion and copper rose on prospects that a weaker US dollar will raise commodities' appeal as an inflation hedge and a $15 billion rescue plan for US automakers will support demand for industrial metals. Suncor Energy Inc. rose 11 percent after Russia signaled it may co-ordinate a crude output cut with OPEC. Insurer Great-West Lifeco Inc. slid on a plan to sell stock and shore up capital.

"There's some optimism that the fiscal and monetary stimulus being announced globally will have a positive impact," said Laura Wallace, who helps oversee about $300 million as managing director at Coleford Investment Management Ltd. in Toronto. "Gold is about fears of a return of inflation. In Canada, the market goes up when oil goes up, and it goes down when oil goes down."

The Standard & Poor's/TSX Composite Index rose 2.8 percent to 8,634 in Toronto, after oil gained 3.4 percent. The Canadian benchmark fell yesterday the first time in three days after Royal Bank of Canada announced a share sale to boost capital reduced by writedowns on US debt investment.

The S&P/TSX, which gets 75 percent of its value from finance, energy and mining shares, rose on December 8 after US President-elect Barack Obama pledged to implement the biggest US public works spending plan since the 1950s when he takes office in January.

The benchmark for Canadian stocks has still slid 38 percent in 2008, poised for its worst year, after global credit losses approached $1 trillion and commodities dropped from records. The Bank of Canada slashed its key lending rate to 1.5 percent yesterday, the lowest since 1958, saying the country is "entering a recession."

Goldcorp, the second-biggest bullion mining company by market value, gained C$3.56 to C$34.50, the steepest gain since November 21. Barrick Gold Corp., the largest producer, climbed 9.7 percent to C$38.50.