Toronto stocks closed higher Thursday, paced by strong performances in the materials and technology sectors. The S&P/TSX composite index finished up 28.45, or 0.27%, to 10,699.89.

Volume on the senior exchange was robust 302 million shares.

Light sweet crude for September delivery closed up 90¢ to settle at a record US$65.80. During intraday trading, oil briefly hit $66 a barrel. The energy group fell back 0.18%, as investors took profits.

Nexen Inc. fell 55¢, or 1.07%, to close $50.70. The energy producer expects to raise $300 million from the spinoff of its profitable chemicals division into an income trust, while keeping a 60% stake.

In the IT sector, up 1.24%, Nortel Networks continued on its recent run, gaining 16¢, or 4.42%, to $3.78, in heavy trading of 24.5 million shares.

The materials group was up 2.21%, largely on the higher price of gold, which closed at US$450.90, up $8.90, or 2% on the session.

Placer Dome Inc. gained 62¢, or 3.45%, to $18.61. . In economic news, Statistics Canada reported the nation’s merchandise trade surplus with the world grew last year as prices surged for export commodities such as energy and metals.

CAE Inc. reported quarterly profit slipped to $20.8 million from a year-earlier $24.3 million despite higher revenue. Nevertheless, the results beat analyst expectations. Shares lifted 75¢, or 10.65%, to $7.79.

Shares in CP Ships Ltd. advanced 23¢, or 1.05%, to $22.20 as the company reported its second-quarter profit ballooned to US$33 million from a year-earlier US$3 million.

The junior S&P/TSX Venture composite index finished up 72.74, or 3.96%, to close 1,908.69. The strong showing was partly attributable to Bear Creek Mining Corp. and La Mancha Resources Ltd., which both posted double-digit percentage gains.

In New York, investors shrugged off soaring crude prices, putting faith in the strength of the U.S. economy.

The Dow Jones industrial average finished up 91.48 points, or 0.86%, at 10,685.89. The tech-heavy Nasdaq composite index rose 16.74, or 0.78%, to 2,174.55. The S&P 500 rose 8.68, or 0.71%, to 1,237.81

Yahoo Inc. announced Thursday it would pay US$1 billion in cash to acquire a 40% stake in the Chinese e-commerce firm Alibaba.com. Yahoo shares were 57¢ ahead at US$34.76.

The U.S. Commerce Department reported retail sales were up 1.8% in July amid a jump in automobile demand.