By Natalie Armstrong
Reuters
Wednesday, July 26, 2006

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TORONTO (Reuters) - The Toronto Stock Exchange's main index advanced more than 100 points on Wednesday as energy and gold issues were helped by higher oil and bullion prices.

Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, “I would see this as a good opportunity for people to make changes to the portfolio, if changes are necessary.”

The S&P/TSX composite index closed up 124.95 points, or 1.06 percent, at 11,879.55.

The index bounced back with a bang on Monday, closing more than 200 points higher. On Tuesday, it rose another 130 points. The TSX has gained 5.38 percent so far this year.

"The stocks in general took a licking in about the middle of May and this is the recovery," said John Ing, president of Maison Placements Canada in Toronto. "There's almost a bandwagon effect. Everybody remembers how these stocks can perform."

The energy subgroup, which makes up about a third of the main index, jumped 2.12 percent as an attack on a Nigerian oil plant as well as strong U.S. gasoline demand pushed oil to near $74 a barrel .

Talisman Energy closed up 48 Canadian cents, or 2.55 percent, at C$19.27. EnCana Corp. gained C$2.59, or 4.5 percent, to C$60.30.

Shares in the gold-mining sector advanced 1.67 percent as gold futures in New York rebounded. Barrick Gold ended up 55 Canadian cents, or 1.64 percent, at C$34.05. Goldcorp ended up 41 Canadian cents, or 1.26 percent, to C$32.90.

"Investors are probably putting caution aside, and saying 'hey the party's on' and they're taking their money to it for the moment," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc., in Vancouver.

"But I do think there's probably a slowdown looming. I would see this as a good opportunity for people to make changes to the portfolio, if changes are necessary. In other words, maybe they're loaded up too much in one area or another, maybe now's the time to lighten up on some of those thing. You want to try and sell high and maybe buy low one day."

Market volume was 274.3 million shares worth C$6.05 billion. Advancers outpaced decliners 968 to 536. The blue chip S&P/TSX 60 index closed 6.96 points higher, or 1.04 percent, at 673.07. Overall, seven of the TSX index's 10 main groups ended higher.

South of the border, U.S. stocks ended with a last-minute dip along with shares of jet maker Boeing Co., whose 2007 outlook disappointed.

The Dow Jones industrial average slipped 1.2 points, or 0.01 percent, to close at 11,102.51. The Nasdaq Composite Index fell 3.44 points, or 0.17 percent, to end at 2,070.46. The S&P 500 inched down 0.48 points, or 0.04 percent, to finish at 1,268.40.

($1=$1.14 Canadian)

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.