By John MccRank
Reuters
Wednesday, December 13, 2006

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TORONTO (Reuters) - The Toronto Stock Exchange's main index closed near a record high on Wednesday as gains in the oil and gas and mining sectors overshadowed a pullback in banks.

Adrian Mastracci, fee-only portfolio manager at Vancouver’s KCM Wealth Management, says, "I still expect the banks to be in there whether there's going to be a slowdown or not, so I'm not concerned about the little pullback today."

The S&P/TSX composite index closed up 51.84 points, or 0.4 percent, at 12,910.32, just off the record close of 12,915.72. Overall, seven of the TSX index's 10 main groups advanced.

"We've been seeing a steady advance ever since the lows that we saw on the first of November...and it really looks like investors are getting ready for a run at the 13,000 level," said Elvis Picardo, chief market strategist at Global Securities Corp. in Vancouver.

Oil and gas producers, which account for nearly a third of the key index, rose by 1.15 percent after a U.S. government report showed and unexpected drop in crude stockpiles. U.S. crude futures settled up 35 cents at $61.37 a barrel.

Suncor Energy Inc. closed up C$1.85, or 2 percent, at C$92.25. Canadian National Resources gained 69 Canadian cents, or 1.1 percent, to C$61.64. Talisman Energy, Canada's No. 3 independent oil explorer, jumped 58 Canadian cents, or 2.9 percent, to C$20.37.

Base metal miners, part of the materials sector, gained 1.55 percent. Teck Cominco was up C$1.94, or 2.2 percent, at C$91.85, while First Quantum Minerals rose C$1.73, or 2.7 percent, to C$66.00.

The heavily weighted financial services sector edged lower, giving up some of its recent gains, settling down 0.14 percent.

Royal Bank of Canada, the country's biggest bank, fell 35 Canadian cents, or 0.6 percent, to C$54.64. Toronto-Dominion Bank lost 43 Canadian cents, or 0.6 percent to close at C$67.42.

"I still expect the banks to be in there whether there's going to be a slowdown or not, so I'm not concerned about the little pullback today," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc. in Vancouver.

Elsewhere, discount brewer Lakeport Brewing Income Fund was up 66 Canadian cents, or 3.4 percent, to C$20.20 after it declared a special cash distribution of 35 Canadian cents a unit.

Market volume in Toronto was 322 million shares worth C$5.8 billion. Advancers outpaced decliners 814 to 789. The blue chip S&P/TSX 60 index closed 2.85 points higher, or 0.4 percent, at 743.58.

In New York, the Dow Jones industrial average gained 1.92 points, or 0.02 percent, to close at 12,317.50. The Nasdaq composite index advanced 0.81 points, or 0.03 percent, to close at 2432.41.

($1=$1.16 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.