TORONTO (Reuters) — The Toronto Stock Exchange’s benchmark index made its fourth advance in five sessions as energy issues tracked oil prices higher.The key S&P/TSX composite index closed up 67.99 points, or 0.6 percent, at 12,378.20 after a day in which eyes were on midterm US election results and the consequences for Canada of a Congress in which the Democratic Party has moved into the driver’s seat.

Overall, seven of the TSX index’s ten main groups were higher with energy producers and financial services institutions, which together account for more than half the index, both recovering losses from the previous session.

Oil and gas producers, up 1.6 percent, represented the top three weighted gainers as a decline in US fuel stockpiles pushed crude futures up nearly $1.

With the resignation yesterday of US Defense Secretary Donald Rumsfeld, “this spells possibly (oil) supply disruption down the road if the plan changes for US involvement in the Middle East,” said Mario Richard, senior portfolio strategist at Sceptre Investment Counsel in Toronto.

“And who knows if this can be done smoothly.”

EnCana Corp jumped C$1.57, or 2.8 percent, to C$56.95, while Canadian Natural Resources Ltd. added C$1.84, or 3.3 percent, to C$57.85.

The financial sector, up 0.4 percent, has retained the gains following the government’s announcement last week that it would tax trusts in the same way as it taxes corporations.

Investors immediately gobbled up dividend-paying financial issues as alternatives to income trust funds, helping the TSX to a 2.7 percent surge in five days.

Royal Bank of Canada , the country’s biggest bank, was up 50 Canadian cents, or 1 percent, at C$52.83, and insurer Manulife Financial gained 30 Canadian cents, or 0.8 percent, to C$38.

Among those reporting earnings, Shoppers Drug Mart was the one most were talking about. Profits at Canada’s largest pharmacy chain met estimates and its stock climbed 29 Canadian cents, or 0.6 percent, to C$45.99.

Metals and gold producers provided the counterweight Wednesday, as investors who bought bullion positions in the runup to the US elections took profits after Democrats claimed the House of Representatives.

“We now have a little bit of certainty in the States,” said Sal Masionis, stockbroker at Brant Securities in Toronto. “And Canada depends on them as an export-driven economy. If the States are doing okay, we are doing okay.”

Barrick Gold Corp. sank 70 Canadian cents, or 2.1 percent, to C$33.24 as it extended for a fourth time its bid for NovaGold Resources Inc. , which closed up 34 Canadian cents, or 1.9 percent, at C$18.

The TSX materials sector has quietly risen 16.8 percent since early October, although it eased 0.1 percent on Wednesday.

Nortel Networks led the day's losers, off 20 Canadian cents, or 8.3 percent, at C$2.22 a day after it reported a smaller third-quarter loss.

Market volume was 420 million shares worth C$6.4 billion. Decliners outpaced advancers 804 to 753.

The blue chip S&P/TSX 60 index closed 5.43 points higher, or 0.8 percent, at 714.23.