TORONTO (Bloomberg) - Canadian stocks advanced after oil traded at its highest price in more than a week and Uranium One Inc. rose to a 21-month high after saying regulators approved its sale of a stake to Russia's Uranium Holding ARMZ.

Suncor Energy Inc. led energy stocks higher as the industry group advanced for a second day. Financial and technology stocks also gained and Magna International Inc., Canada's largest auto- parts maker, climbed after Handelsblatt reported that it is no longer interested in buying an automaker. Eight of 10 industry groups climbed.

The Standard & Poor's/TSX Composite Index rose a second day, increasing 0.3 percent to close at 12,945.81. About 247 million shares changed hands on the Toronto Stock Exchange, the least since July, with US markets closed for the Thanksgiving holiday. The benchmark moved in a 44-point range, the tightest since March.

"Markets are starting to regain a little bit of their stability after what's been going on in Europe," said Tony Demarin, chief investment officer at BCV Asset Management in Winnipeg, Manitoba, which manages about C$240 million ($238 million). "Risk appetite is starting to enter the market a little and that always speaks well for energy and commodities."

The benchmark has declined 0.8 percent since November 8 after surging 14 percent in the prior four months. The rally has trailed off as concern has mounted that more European countries will have trouble paying their debts and China twice increased reserve requirements for banks.

Uranium One gained 9.7 percent to C$5.45 for the biggest increase today in the S&P/TSX. The Vancouver-based producer of the metal said in a statement that it now has all regulatory approvals required to close its transaction with ARMZ. Denison Mines Corp., a Toronto-based uranium producer, increased 8.1 percent to C$3.20.

Suncor, Canada's largest oil and gas producer, rose 0.5 percent to C$34.55. BlackBerry maker Research In Motion Ltd. gained 0.7 percent to C$60.63.

Royal Bank of Canada, the country's biggest lender by assets, increased 0.6 percent to C$55.29. Toronto-Dominion Bank, the second-biggest, climbed 0.7 percent to C$75.31 after Chief Executive Officer Edmund Clark said he may raise the dividend after the fiscal first quarter ends in January.

Magna climbed 2.1 percent to C$49.89 after Handelsblatt quoted Don Walker, the company's CEO, as saying plans to buy an automaker are "dead." The Aurora, Ontario-based company aims to quickly and "substantially" increase the share of its revenue from emerging markets from under 5 percent, Frankfurter Allgemeine Zeitung reported.

Gains were limited as consumer and health companies retreated at least 0.2 percent. Tim Hortons Inc. lost 1.4 percent to C$40.54 to snap a four-day winning streak, the longest in a month.

Oil advanced, extending yesterday's gains as traders bet a larger-than-forecast decline in US jobless claims signaled economic growth is accelerating in the biggest crude-consuming nation. Crude for January delivery rose as much as 67 cents, or 0.8 percent, in electronic trading on the New York Mercantile Exchange to $84.53 a barrel, the highest price since November 16.