UPDATE 4-Toronto stocks rise on oil but financials weaken

Mon Jun 30, 2008 5:00pm EDT
 
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(Adds comments, details, updates figures)

By Wojtek Dabrowski

TORONTO, June 30 (Reuters) - The Toronto Stock Exchange's main index finished more than 100 points higher on Monday as record oil prices bolstered resources and energy shares, offsetting a weak showing by financial services shares on persistent concerns about the credit crunch.

U.S. crude charged to a new high of $143.67 before settling lower, providing renewed fuel for the shares of Canada's energy companies.

"That seems to be the culprit today for sure," Adrian Mastracci, portfolio manager at KCM Wealth Management Inc, said of the price of crude.

"There's not a lot of excess supply, so if anything goes offline even temporarily -- bingo," he said, adding speculators also help drive prices higher.

Overall, five of the 10 main sectors of the S&P/TSX composite index .GSPTSE recorded gains in the session, including energy and the resource-heavy materials group, which added 1.75 percent and 1.74 percent respectively.

Oil and gas powerhouse EnCana Corp (ECA.TO: Quote) rose C$3.51, or 3.9 percent, to close at C$93.36, and Petro-Canada PCA.TO added C$1.86, or 3.4 percent, to end at C$57.11.

Agnico-Eagle Mines (AEM.TO: Quote) rose C$1.94, or 2.6 percent, to finish at C$76.49.   Continued...