Toronto stocks rose modestly Thursday, as a red hot energy sector overshadowed a second poor day in the financials group.

The S&P/TSX composite index finished up 27.92, or 0.26%, to close 10,626.71.

Volume on the senior exchange was 284 million shares.

Seven of the 10 TSX main sub-groups were up, with the energy index gaining 2.27%

Crude oil futures closed up 52¢ to US$61.38 on continuing supply worries.

Air Canada’s parent company, ACE Aviation Holdings Inc., reported a second-quarter profit of $168 million, compared with a year-earlier loss of $510 million. ACE also disclosed it plans to spin off its Jazz regional airline through an income trust structure. ACE shares rose $1.04, or 1%, to $99.50.

Shares of CI Fund Management Inc. fell 85¢ to $20.05 after CI dropped plans for a hostile bid for UK fund manager Amvescap plc.

Manulife Financial Corp. shares rose 85¢ to $63.75 after the insurer reported a 28% rise in second-quarter profit, boosted in part by strong investment results and growth in its Canadian, Japanese and U.S. wealth management businesses. Net income for the quarter ended June 30 rose to $839 million, or $1.04 a share, up from $656 million, or 92¢ a share, in the year-before period.

The Canadian dollar closed trading at US82.39¢, up 0.15 of a cent.

The junior S&P/TSX Venture composite index finished up 5.02, or 0.28%, to 1,826.80.

In New York, stocks fell on higher oil prices and disappointing July sales numbers for major U.S. retailers.

The Dow Jones industrial average moved 87.49 points lower to 10,610.1; the Nasdaq composite index was down 25.49 at 2,191.32 and the S&P 500 index lost 9.18 points to 1,235.86.