By Jennifer Kwan
Reuters
Wednesday, June 28, 2006

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TORONTO (Reuters) - Firmer oil prices and bargain-hunting in technology shares helped push Toronto stocks to a higher close on Wednesday despite nervousness ahead of the U.S. Federal Reserve's interest-rate announcement on Thursday.

Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, “Some days it’s panic, some days it’s exuberance and some days it’s down the middle.”

The Toronto Stock Exchange's key S&P/TSX composite index closed up 39.08 points, or 0.35 percent, at 11,332.32.

The U.S. central bank is widely expected to lift interest rates but there is debate on whether the rise will be a quarter point to 5.25 percent or a half point.

"I think if he goes up a quarter that's what the market is expecting and we'll just wait for August (U.S. rate decision)," said John Kinsey, a portfolio manager at Caldwell Securities Ltd.

The tech group rose 1.4 percent, with Nortel Networks Corp. up 10 Canadian cents, or 4.3 percent, to C$2.44 after being beaten down on Tuesday. ATI Technologies Inc. rose 63 Canadian cents, or 4 percent, to C$17.32.

The heavyweight energy group posted a 1 percent rise on higher crude oil prices, which settled up 27 cents at $72.19 a barrel.

Shares of EnCana Corp. gained C$1.10, or 2 percent, to C$58.50, and Suncor Energy Inc. rose C$2.15, or 2.5 percent, to C$87.23.

The financial sector inched up 0.3 percent with better than expected quarterly results from AGF Management Inc. AGF closed up 45 Canadian cents, or 2 percent, at C$20.

"Some days its panic, some days it's exuberance and some days it's down the middle," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc., in Vancouver.

"We've got this sideways dance and we've had it for a long time now. It's how we interpret the data day-to-day and tomorrow could be totally different."

Elsewhere in the market, Sobeys Inc. posted a slightly higher fourth-quarter profit on strong growth in same-store sales. Its shares dipped 5 Canadian cents, or 0.1 percent, to close at C$38.

Overall, six of the TSX index's 10 main groups closed higher. The index's gain was moderated by the resource-laden materials group, which fell 0.4 percent.

Market volume was 225 million shares worth C$4.8 billion. Decliners outpaced advancers 875 to 613. The blue chip S&P/TSX 60 index closed 3.22 points higher, or 0.51 percent, at 638.12.

The Dow Jones industrial average gained 48.82 points, or 0.45 percent, to finish at 10,973.56. The Standard & Poor's 500 index added 6.80 points, or 0.55 percent, to end at 1,246. The Nasdaq composite index rose 11.59 points, or 0.55 percent, to close at 2,111.84.

($1=$1.12 Canadian)

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