Toronto stocks advanced on Thursday as oil and metals prices rose. At midday, the S&P/TSX composite index was up 45.86 points, or 0.47%, at 9,845.93.

Volume was 165 million shares.

Six of the 10 main groups were in positive territory.

Energy issues were up 1.27% as oil prices climbed above US$54 a barrel.

EnCana rose $1.33, or 1.58%, to $85.64. Talisman Energy , which reported higher fourth-quarter profits on Wednesday, was up 68¢, or 2.62%, at $42.68. Canadian Natural Resources climbed $2.34, or 3.32%, to $72.75.

Tech issues were off 0.67%. However, Nortel Networks, which was upgraded by Scotia Capital on Wednesday, , advancing 5¢, or 1.37%, to $3.70.

The materials group, home to mining companies, was up 0.24%. Uranium producer Cameco was up 21¢, or 0.39%%, at $54.30 on higher uranium demand. Inco Ltd. was up 70¢, or 1.72%, at $41.37, while Falconbridge gained 45¢, or 1.29%, to $35.33, both on firm metal prices.

Heavily-weighted financials were up 0.55%.

Health care companies recouped some of Wednesday’s losses, gaining 1.02%.

The junior S&P/TSX Venture composite index was up 10.70 points at midday to 2,016.09.

In New York, markets slipped as the rising price of oil trumped the release of figures on U.S. productivity, retail sales and unemployment that pointed to an improving American economy.

At midday, the Dow Jones industrial average was off 26.57 points, or 0.25%, at 10.785.22. The tech-heavy Nasdaq composite index was down 15.81 points, or 0.76%, to 2,051.69.

The broader S&P 500 slipped 4.12 points, or 0.34%, to 1,205.96.

Revised figures from the U.S. Labor Department showed that productivity of American companies grew at an annual rate of 2.1% in the final three months of 2004, much higher than the 0.8% indicated by preliminary figures released a month ago.

The new, better-than-expected estimate raised the productivity indicator for 2004 by four%, capping the strongest three-year period for growth since the start of record keeping more than 50 years ago.

The department also released jobless figures which showed the number of Americans filing first-time claims for unemployment benefits declined by 1,000 last week to a seasonally adjusted 310,000.

Economists are also predicting that Friday’s employment report will show a sharp increase in the number of new jobs being created to 245,000 in February, compared with 146,000 in January.

In a separate report, retail sales figures for February showed a broad range of companies exceeding Wall Street forecasts, including Wal-Mart Stores, J.C. Penney Co., Talbots and Bebe Stores.