TORONTO (Reuters) - Toronto's main stock index advanced yesterday for the first time in two sessions as energy and materials producers rose on the back of stronger commodity prices.

Raw material prices also got support from hopes for strong Chinese demand, which lifted global equities yesterday, while oil rallied above $78 a barrel, snapping a five-day losing streak.

Among the index's top gainers were Suncor Energy, up 0.79 percent at C$37, while Potash Corp. gained 1.1 percent to C$119.30.

The S&P/TSX composite index closed up 65.17 points, or 0.56 percent, at 11,750.54. Volume was a fraction of its normal levels, with US markets closed for the Martin Luther King holiday.

"With light volume and not a whole lot of conviction, there is no one shooting the lights out," said Peter Chandler, senior vice-president at Canaccord Wealth Management.

Financials were also on the rise, after coming under pressure for the first two weeks of the year. Toronto-Dominion Bank led all influential advancers, climbing 1.2 percent to C$64.10, while Manulife Financial was up 1.1 percent at C$20.54.

Six of the index's 10 main groups were higher, with the three biggest sectors - materials, financials and energy - each up more than 0.6 percent.

The Canadian dollar edged higher against the US currency yesterday as firmer prices for key Canadian exports oil and gold, and steady global equity markets, helped to support the currency.

The currency was also higher ahead of a Bank of Canada interest rate announcement today morning in which the central bank is widely expected to keep rates steady at 0.25 percent. The announcement is due at 9.00 a.m. (2 p.m. GMT).

"The Canada might be benefiting at the margin from some speculation about the bank starting to set the stage for an eventual rise in rates," said Paul Ferley, assistant chief economist, Royal Bank of Canada.

All of the 11 primary dealers surveyed by Reuters last week forecast the central bank would stand pat on rates and most expect it to maintain its conditional commitment to keep the key overnight rate at its current level until the end of the second quarter. All see a rate hike at some point this year, however.