TORONTO - The Toronto stock market closed higher Monday, extending the spring rally to a sixth week, in a broad-based advance led by financial and commodity stocks even as oil prices moved lower.

New York closed little changed amid growing concern that General Motors Corp. is preparing for possible bankruptcy.

Toronto's S&P/TSX composite index closed up 98.5 points to 9,285.62 on top of last week's 1.3 per cent rise. The showing left the TSX up almost 23 per cent since the rally took off March 10, leaving some analysts to think the market may be vulnerable to a pullback.

"Those still on the sidelines needn't fear that they missed their opportunity to jump on board," said Avery Shenfeld, chief economist at CIBC World Markets.

"Markets appear to be in growing danger of running ahead of the fundamentals."

Shenfeld's caution was based on the "high potential" for damaging economic news and sharply lower corporate profits, along with the lack of a single strong factor that could maintain the rally.

The TSX Venture Exchange gained 11.89 points to 980.86 while the Canadian dollar was up 0.39 of a cent to 82.01 cents U.S.

The Dow Jones industrial average moved 25.57 points lower to 8,057.81 after finishing slightly higher last week, and up by more than 20 per cent since hitting its lowest level since 1997 on March 9.

The Nasdaq composite index inched up 0.77 of a point to 1,653.31 while the S&P 500 index moved up 2.17 points to 858.73.

Traders were uneasy after a New York Times report that the U.S. Treasury has directed GM to lay the groundwork for a potential bankruptcy filing by June 1. GM might be forced to file for bankruptcy if it cannot complete a plan to exchange debt for equity and receiving concessions from the United Auto Workers, according to the report.

Jamie Cox, managing partner at Harris Financial Group, said the potential fallout from a GM bankruptcy filing will likely weigh on the market.

Cox said it was inconceivable that GM would get into and out of bankruptcy quickly.

"Think of the economic fallout potential," he said.

Shares of GM, a Dow component, fell 33 cents or 16 per cent to US$1.71.

In Toronto, the financial sector ran ahead two per cent as Royal Bank (TSX:RY) rose $1.02 to $40.60 and Manulife Financial (TSX:MFC) climbed 48 cents to $18.98.

The TSX energy sector also revived, rising 0.5 per cent as oil prices bounced off early lows well below US$50 a barrel after the International Energy Agency said Friday that world demand this year will likely fall by 2.8 per cent to 83.4 million barrels a day.

The May crude contract on the New York Mercantile Exchange fell $2.19 to US$50.05 a barrel. EnCana Corp. (TSX:ECA) rose 98 cents to $56.26 and Canadian Natural Resources (TSX:CNQ) added 55 cents to $55.26.

French oil giant Total SA raised its bid for Alberta oilsands player UTS Energy Corp. (TSX:UTS) to $829.8 million or $1.75 per share, from $1.30 per share. UTS stock moved up one cent to $1.81.

Energy Savings Income Fund (TSX:SIF.UN) units were ahead 36 cents at $12.52 after it disclosed a non-binding agreement to acquire Universal Energy Group (TSX:UEG). The deal would exchange 0.58 of an Energy Savings unit for each UEG share.

U.S. dollar weakness helped send the June gold contract up $12.50 to US$895.80 an ounce on the Nymex, sending the TSX gold sector up per cent. Goldcorp Inc. (TSX:G) advanced 65 cents to $36.80.

The base metals sector also buoyed the TSX, rising seven per cent. Teck Cominco Ltd. (TSX:TCK.B) rose $1.05 to $10.99 as the price of copper in New York jumped 2.8 per cent to end at US$2.13 a pound, its highest level since late October. Copper has rallied nearly 50 per cent this year.

Shares in Toronto-based resource company Sherritt International Corp. (TSX:S), the largest foreign investor in Cuba, closed up 79 cents or 24.4 per cent to $4.02 amid moves by the Obama administration to ease U.S. restrictions on the island.