By Jennifer Kwan
Reuters
Friday, February 23, 2007

Also published in:

TORONTO (Reuters) - The Toronto Stock Exchange's main index ended higher on Friday as shares of energy companies rose along with the price of oil, while Fairfax Financial Holdings Ltd. added support.

Adrian Mastracci, fee-only portfolio manager at
KCM Wealth Management in Vancouver, says, "There are still a few question marks south of the border."

The S&P/TSX composite index closed up 22.55 points, or 0.2 percent, at 13,343.53, a record closing high. The benchmark index was up 0.2 percent on the week.

"I think right now we're in a market that is extremely reactive to any changes in the underlying commodities prices," said Michael Sprung, president at Sprung & Co. Investment Counsel. "From my point, that is a sign that things are a little frothy."

U.S. crude rose to $61.14 a barrel after touching as high as $61.80 following a sharp drop in fuel stocks in the United States as well as supply concerns resulting from the Iran nuclear standoff. That drove the heavyweight energy sector, which accounts for nearly 30 percent of the index's weight, up 0.4 percent. Overall, six of the TSX index's 10 main groups were higher.

EnCana Corp. rose 41 Canadian cents, or 0.7 percent, to C$55.96, while Petro-Canada added 69 Canadian cents, or 1.6 percent, to C$44.65.

Metal prices rallied with gold nearing the $700 an ounce level. Base metals prices were also firm.

Goldcorp Inc. climbed 19 Canadian cents, or 0.6 percent, to C$32.99, while Alcan Inc. rose 44 Canadian cents, or 0.7 percent, to C$63.04.

Goldcorp said on Friday that 2006 gold production increased 49 percent to 1.69 million ounces, and that it expects 2007 production to be about 2.6 million ounces, assuming it sells its Peak and Amapari mines.

Elsewhere, Fairfax Financial surged C$20.68, or 10 percent, to C$221.23 after the company said after the bell on Thursday it swung to a profit in the fourth quarter.

Shares of Canadian specialty-TV and radio group Astral Media Inc. slid C$1.76, or 3.9 percent, to C$42.86.

Astral Media said after the market close it has entered into exclusive negotiations to buy privately held radio broadcaster Standard Radio Inc. for an undisclosed amount of cash and stock.

SNC-Lavalin Group fell 72 Canadian cents, or 1.94 percent, to C$36.30 even though it reported higher quarterly profit and raised its dividend.

While the market has remained in record territory, concerns over inflation still linger, said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc., in Vancouver.

"There are still a few question marks south of the border," he added, of the TSX lacking direction from the U.S. markets.

South of the border, financial services shares were in focus amid worries over rising defaults in the subprime mortgage industry.

The Dow Jones industrial average was down 38.54 points, or 0.3 percent, to end at 12,647.48, while Nasdaq Composite Index was down 9.84 points, or 0.39 percent, to close at 2,515.10.

On the TSX, market volume was 442 million shares worth C$5.5 billion. Advancers outpaced decliners 919 to 694. The blue chip S&P/TSX 60 index closed 0.87 points higher, or 0.1 percent, at 761.26.

Overall, six of the TSX index's 10 main groups were higher.

($1=$1.16 Canadian)

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