Energy shares led Toronto stocks to a higher close on Friday as worries about gasoline supply levels attracted investors. The S&P/TSX composite index rose 50.65 points to 8,788.49, up 147 points for the week.

The benchmark index is now sitting at its best level in just over three years.

The market also got a boost as fund managers scrambled to make adjustments to enhance their portfolios for month-end.

The energy sector raced ahead 1%, to lead the TSX sub-indices. Health care stocks rose 0.86% gain.

Canadian Natural Resources shares climbed $2.05 to $73.25, while Nexen rose $1.15 to $49.95.

The heavily weighted financial services sub-index was shaky as Royal Bank fell $2.14 to $63.45 after a fiscal first-quarter profit of $790 million, up only $11 million from a year ago.

Fairfax Financial lost $6 to $207.

Shares of CIBC added 74¢ to $68.64 despite news that the bank faces a class-action lawsuit alleging underperformance in a U.S. index mutual fund.

The junior S&P/TSX Venture composite index gained 23.14 points to close at 1,889.31.

In New York, stocks closed flat despite a fresh batch of reports indicating the U.S. economy is on the mend.

U.S. GDP grew at a 4.1% annual rate in the final quarter of 2003, better than the expected 3.8% and above the government’s preliminary estimate a month ago of 4%.

The Dow Jones industrial average added 3.78 points to finish at 10,583.92. The broader S&P 500 inched up 0.03 of a point to 1,144.94. The tech-heavy Nasdaq composite index dipped 2.75 points, to close at 2,029.82.

For the week, the Dow slipped 0.3% and the Nasdaq declined 0.4%, while the S&P 500 ended up 0.1%.

For the month of February, the Nasdaq dropped 1.8%, while the Dow rose 0.9% and the S&P 500 climbed 1.2%.

The Canadian dollar was closed up 0.37¢ at US74.87¢, after Canada’s battered economy ended a sluggish 2003 on a healthier note than many expected. Gross domestic product expanded by 3.8% in the fourth quarter, measured on an annualized basis, Statistics Canada reported.