* TSX index rises 1.3 pct after touching 7-month high
* Energy, materials lead rally (Adds details, quote, updated numbers)
By Cameron French
TORONTO, May 20 (Reuters) - Toronto’s main stock index climbed more than 1 percent on Wednesday, boosted by rising oil and gold prices, but it pared stronger early gains as investors took profits after a sharp two-day rise.
The index rose by as much as 2.6 percent shortly after the open, touching a seven-month high of 10,365.39, as oil charged to a six-month high above $62 a barrel, while gold climbed to an eight-week peak above $940 an ounce.
Energy issues rose 2.17 percent, while the mining-heavy materials sector climbed 3.03 percent, largely on the back of gold stocks.
In the energy subgroup, Suncor Energy (SU.TO) rose 3.4 percent to C$36.26, while UTS Energy UTS.TO gained 4 percent to C$1.57.
All told, the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 131.49 points, or 1.3 percent, to finish at 10,232.44.
Bruce Latimer, a trader at Dundee Securities, said the pullback from the big early gain was not unexpected given the 3.5 percent rise in the previous session.
“We’ve had a heck of a run over the last eight weeks, and to have the the odd day of giveback is not out of the ordinary, especially when we had a big day on Tuesday, which I think caught a lot of people off guard,” he said.
$1=$1.14 Canadian Reporting by Cameron French; editing by Peter Galloway