The Toronto Stock Exchange's main index ended higher for a third straight session on Monday with energy and financial services shares providing support in trading made thin by the Martin Luther King Jr. Day holiday in the United States.

The Toronto Stock Exchange S&P/TSX composite index <.GSPTSE> closed up 76.55 points, or 0.6 percent, at 12,755.36.

Nine of the TSX index's 10 main groups were higher, led by a 1.7 percent charge in the heavyweight energy sector. The health care sector lost 0.5 percent.

"The market is perceiving that the price of oil has reached a bottom and is tending to look forward in anticipation of higher share prices," said Rob Moss, oil and gas analyst at Acumen Capital Partners in Calgary.

Energy shares climbed even though the price of crude oil eased to below $53 a barrel. But the price held above last week's 19-month low of $52 as the market balanced mild weather in the United States against the prospect of an OPEC supply cut.

Suncor Energy climbed C$1.37, or 1.6 percent, to C$86.89, and Nexen Inc. added C$1.61, or 2.5 percent, to C$65.26.

"Oil is providing a good deal of the move today," said Irwin Michael, portfolio manager at ABC Funds. "But on balance the market is very thin."

"It's the marginal player -- either buyer or seller -- that is pricing the market here," he added.

The financial services sector, which comprises more than 30 percent of the index's weighting, provided support with a 0.4 percent gain ahead of the Bank of Canada's interest rate decision on Tuesday.

Canadian Imperial Banking Corp. gained 51 Canadian cents to C$98.92, while Sun Life Financial Inc. gained 73 Canadian cents to finish at C$49.45.

Elsewhere, shares of March Networks slid C$9.29, or 44 percent, to finish at C$11.84 after the maker of video-surveillance software and equipment cut its 2007 forecasts due to reduced demand from its largest customer, Wal-Mart Stores Inc.

Units of Sunrise Senior Living Real Estate Investment Trust's rose C$3.85, or 35 percent, to C$14.90 after Ventas Inc. offered to buy the REIT's private pay assisted living communities for US$1.8 billion including debt, the companies said on Monday.

Market volume was 196 million shares worth C$2.7 billion. Advancers outpaced decliners 933 to 611. The blue chip S&P/TSX 60 index <.TSE60> closed 3.82 points higher, or 0.52 percent, at 732.98.

($1=$1.17 Canadian)

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By Jennifer Kwan

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