TORONTO (Reuters) - Toronto's main stock index rebounded from a steep early drop to finish higher yesterday, rising for the fourth straight session as investors brushed off early worries about debt-stricken Greece and drew confidence from strong US earnings.

Financial stocks that fell early in the session trimmed their losses and ended almost flat, while a snapback in oil prices drew investors to oil and gas issues, resulting in a 0.33 percent gain for the index's key energy sector.

"The market seems to be once again focusing on the strong fundamentals, the strong earnings growth, and that's really helped create a big turnaround in sentiment on the day," said Elvis Picardo, strategist at Global Securities in Vancouver.

In the morning, the index fell more than 100 points after data showed Greece's budget deficit was worse than previously thought. This boosted the safe-haven US dollar, pressuring gold prices.

Despite the weak gold prices, the materials sector was the strongest of the seven TSX subgroups that rose and ended the session up 0.79 percent.

Teck Resources led the sector higher and was the strongest major stock on the index, rising 5.5 percent to C$43.99.

The diversified miner said it would reinstate its dividend, which it cut in late 2008 while awash in debt.

Among financials, Canadian Imperial Bank of Commerce rose 0.9 percent to C$76.25, while Imperial Oil helped lead energy producers, rising 1.9 percent to C$42.25.

All told, the Toronto Stock Exchange's S&P/TSX composite index rose 26.31 points, or 0.22 percent, to end at 12,160.87.