By Blaise Robinson
Reuters
Monday, April 17, 2006

TORONTO (Reuters) - Toronto stocks gained ground for a second straight session on Monday, propelled by buoyant commodity prices, with oil and gold surging to multiyear highs.

Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says,“The focus could switch from commodity prices to quarterly results as most companies are due to report in the next few weeks.”

The Toronto Stock Exchange S&P/TSX composite index closed up 60.43 points, or 0.49 percent, at 12,309.02.

Gold-mining shares jumped almost 4 percent as U.S. gold futures reached 25-year peaks on fund and speculator buying after a long holiday weekend. Bullion closed $18.70 higher at $618.80 an ounce. Gold prices have soared about 20 percent so far this year.

Shares of gold miners are still lagging bullion's recent rally, said Joe Ismail, a technical analyst at Maison Placements Canada.

"There are just two or three stocks in the senior category that have been matching up the advance," Ismail said.

Barrick Gold rose C$1.40, or 4.2 percent, to C$34.55, while Kinross Gold jumped 72 Canadian cents, or 5.8 percent, to C$13.18.

The energy sector was also on the rise, gaining 1.12 percent as oil settled above $70 a barrel for the first time since the NYMEX started crude oil trading in 1983.

U.S. crude oil futures settled at $70.40 a barrel, up $1.08, or 1.6 percent, amid renewed concerns over Iran's nuclear ambitions.

Talisman Energy added 56 Canadian cents, or 0.9 percent, to C$65.25, while Suncor Energy Inc. rose C$2.51, or 2.6 percent, to C$98.01.

Petrofund Energy Trust jumped C$1.37, or 5.4 percent, to C$26.74 after rival Penn West Energy Trust agreed to buy Petrofund in a deal valued at C$3.1 billion.

Penn West Energy Trust rose C$1.18, or 2.8 percent, to C$43.30.

Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc. in Vancouver, said the focus could switch from commodity prices to quarterly results as most companies are due to report in the next few weeks.

"The earnings season is almost upon us and investors are looking to find out what happened in this last quarter," Mastracci said.

Overall, six of the TSX's 10 main groups fell. The technology sector lost 1.49 percent, while consumer staples dropped 0.62 percent.

Among techs, Research In Motion dropped C$2.20, or 2.5 percent, to C$85.88, while Nortel Networks slid 12 Canadian cents, or 3.7 percent, to C$3.17.

Overall market volume was a light 289 million shares worth C$3.6 billion. Advancers outpaced decliners 855 to 679.

The blue chip S&P/TSX 60 index closed 3.06 points, or 0.44 percent, higher at 692.58.

In New York, stocks stumbled as surging oil and gold prices triggered investor fears about inflation risks and overshadowed optimism about corporate profits.

The Dow Jones industrial average was down 63.87 points, or 0.57 percent, at 11,073.78. The Nasdaq Composite Index was down 14.95 points, or 0.64 percent, at 2,311.16.

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.