Nov. 21 (Bloomberg) -- Canada's Standard & Poor's/TSX Composite Index climbed to a record as commodity producers including Suncor Energy Inc. and Teck Cominco Ltd. advanced on higher oil and metals prices and speculation of more takeovers.

Freeport-McMoRan Copper & Gold Inc.'s offer this week to buy Phelps Dodge Corp. may signal that a yearlong buying spree in the mining industry is far from over because of lofty metals prices and a shortage of new mines, analysts said.

``It's a pretty bullish scenario,'' said Stephen Gauthier, who oversees C$20 million at Gauthier & Cie. in Montreal. ``M&A is helping sentiment.''

The S&P/TSX gained for a third day, rising 185.67, or 1.5 percent, to 12,602.30, surpassing the previous all-time high of 12,487.32 on April 19. All 10 industry groups rose.

Gauges of energy and raw-material companies, which account for more than two-fifths of the S&P/TSX's value, climbed 2.1 percent and 2.4 percent, respectively, for the two biggest gains in the index.

Suncor, the world's biggest oil-sands miner, increased C$1.54 to C$88.14. EnCana Corp., Canada's largest natural-gas producer, rose C$1.12 to C$58.80.

Crude oil for January delivery closed up 2.3 percent at $60.17 in New York after the Trans-Alaska Pipeline System limited the amount of oil it will carry and a North Sea platform was shut because of a gas leak.

Nickel

Nickel and copper gained the most in five weeks after inventories of the metals fell and Swiss mining company Xstrata Plc forecast another decade of strong demand for commodities.

Nickel for delivery in three months rose $1,050, or 3.5 percent, to $31,300 a metric ton on the London Metal Exchange, the biggest gain since Oct. 16. Prices have outpaced other industrial metals including copper and lead as miners fail to keep pace with demand from stainless-steel makers.

Gold futures for December delivery in New York closed 1.1 percent higher at $628.70 an ounce as the gain in oil boosted the appeal of the precious metal as a hedge against inflation.

Barrick Gold Corp., the world's biggest bullion miner, gained 67 cents to C$33.21. Smaller rival Goldcorp Inc. increased C$1.43 to C$31.41.

Teck Cominco Ltd., which is seeking smaller acquisitions after failing to buy Inco Ltd. this year, advanced C$2.68 to C$82.24.

The following shares had unusual price changes. Stock symbols are in parentheses.

Air Canada (AC/A CN) fell C$1.33, or 7 percent, to C$17.67 on its third day of trading. The country's biggest airline is 16 percent below the C$21 ($18.34) at which it and its parent ACE Aviation Holdings Inc. (ACE/A CN) last week sold 9.52 million shares. It was the largest initial public offering by a North American carrier in three years.

Shore Gold Inc. (SGF CN) jumped 65 cents, or 13 percent, to C$5.65 for the top gain in the S&P/TSX. The company said in a statement that its Fort a la Corne diamond joint venture with Newmont Mining Corp. contains an estimated 800 million tonnes of diamondiferous kimberlite.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.

Last Updated: November 21, 2006 17:01 EST