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* TSX ends up 2.18 percent at 11,947.90
* All 10 of TSX's main sectors rise
* Some investors still hesitant to re-enter market (Updates to market close; adds quotes, details)
By John McCrank
TORONTO, May 10 (Reuters) - Toronto's main stock index rose over 2 percent on Monday in a broad-based rally as investors were emboldened by a $1 trillion emergency rescue package out of Europe aimed at containing Greece's debt crisis.
Energy producers were among the top gainers as the price of U.S. crude oil rallied more than 2 percent on the back of the aid plan. [O/R] [ID:nTOE64904W]
Canadian Natural Resources (CNQ.TO) rose 2.8 percent to C$73.98, while Petrobank Energy and Resources Ltd PBG.TO gained 4.3 percent to C$49.20. The energy group as a whole was up 2.8 percent on the day.
"A lot of those stocks had pulled back just based on worries about longer-term economic growth prospects," said Gareth Watson, portfolio adviser with ScotiaMcLeod.
"If Europe is in trouble ... they make up 25 percent of the world's economy, so that means that the global economy is in trouble."
Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 255.47 points, or 2.18 percent, at 11,947.90. It topped the 12,000 mark briefly.
All 10 groups of Toronto's main index were higher, helping to reverse some of last week's steep losses, which had taken the index to a negative position on the year. Monday's gains pushed it back into positive territory.
The materials group, home to miners, was up 1.9 percent, with Teck Resources TCKb.TO rising 8.8 percent to C$39.53 and First Quantum Minerals (FM.TO) gaining 5.7 percent to C$73.46. Fertilizer producer Potash Corp (POT.TO) added 1.7 percent to C$106.27.
Gold miners limited the gains in the sector, however, as the better prospects for the European economy undercut safe haven buying of gold. Agnico Eagle (AEM.TO) fell 1.2 percent to C$64.76, while Kinross Gold (K.TO) slid 1.4 percent to C$17.85.
The U.S. markets also saw some hefty increases, following rallies in Europe and Asia after the European Union and International Monetary Fund agreed to the rescue package. [MKTS/GLOB] [ID:nN10104588]
While the gains on the TSX were strong, the volume was not actually that high and a lot of investors still appeared hesitant to wade back into the market after last week's big selloff, said Irwin Michael, portfolio manager at ABC Funds.
"We need to see a few more days of proper trading and recovery to get people back in again," he said. "Most people are willing to dip their little toe in the market, but not yet the whole foot. They want to see this carry forth."
$1=$1.02 Canadian Reporting by John McCrank; editing by Rob Wilson