TORONTO (Reuters) - The benchmark index of the Toronto Stock Exchange capped the week with a jump of almost 70 points yesterday as investors took their eyes off the crisis in the credit markets to buy up resource shares.

The S&P/TSX composite index gained 69.22 points, or 0.51 percent, to close at 13,520.33. It was up 3.6 percent for the week.

Four of the index's 10 main groups advanced, with the resource-heavy materials sector adding 1.61 percent.

The key energy group added 0.52 percent, while financials finished flat.

The S&P/TSX 60 index of big Canadian names rose 4.72 points to 785.81.

Among mining names driving the resources lift were Inmet Mining, which rose C$2.20, or 2.6 percent, to C$86.16, and Niko Resources, which added 83 Canadian cents, or one percent, to C$88.44.

"The fact that people are willing to buy resources indicates that they're no longer thinking that the end of the world is going to happen," said Gavin Graham, chief investment officer at Guardian Group of Funds in Toronto.

Resources were also helped by the price of gold, which rose on a weaker US dollar.

However, market watchers cautioned against full-blown optimism, forecasting the global credit crunch triggered by trouble in US subprime mortgage lending is far from over.

"I think we're ... getting a little more comfortable with the subprime — that's today," said Adrian Mastracci, portfolio manager at KCM Wealth Management in Vancouver. "Now, as I step back and look at it, I still think that we have stormy times ahead."

Mastracci pointed out that billions in adjustable-rate mortgages in the United States are coming due for resetting in the coming months, the impact of which could bring further turbulence to markets.

Graham also said that it may be too early to return to buying equities, even though resources may be a good investment choice in the long term.

"You shouldn't be jumping back in with two feet just yet," he said.

The market also had a bank earnings report to digest yesterday, as Royal Bank of Canada delivered a 19 percent increase in third-quarter profit.

Executives gave assurances the bank had little involvement in the troubled parts of the debt markets, but Royal Bank shares slipped as its results failed to match those of rival Toronto-Dominion Bank which reported on Thursday.

Royal shares finished 43 Canadian cents lower at C$55.