TORONTO (Bloomberg) - Canadian stocks rose for a second day as energy companies advanced after Total SA agreed to buy oil sands developer UTS Energy Corp.

UTS soared 63 percent after France's Total said it would pay C$1.5 billion ($1.4 billion) for the part-owner of the Fort Hills oil sands project. New Gold Inc., which mines in Australia, Mexico and the U.S., fell 11 percent after losing a court decision in Mexico. Teck Resources Ltd., Canada's largest base-metals and coal producer, increased 6.2 percent as copper futures gained.

The Standard & Poor's/TSX Composite Index increased 197.1 points, or 1.8 percent, the most in three weeks, to 11,397.27. The S&P/TSX rose one percent on Tuesday after falling to an eight- month low.

"When you're looking for anything positive, obviously that is going to be great news, because two days ago we were ready to jump off a cliff," Steven Conville, who helps manage C$8 billion as a money manager at Macquarie Private Wealth Inc. in Markham, Ontario, said of the UTS deal. Mergers and acquisitions, "for people who are holding stocks they hope to be consolidated, is always a wonderful thing."

World stock markets rallied yesterday after the MSCI World Index had fallen to its lowest level per dollar of profit since March 2009. Equities had slumped after economic data from China and Europe indicated the recovery may be slower than investors had anticipated.

UTS surged 63 percent, the most in 17 months, to C$3.44 after Total agreed to pay C$3.08 a share in cash and shares for the Calgary-based company. UTS shareholders would also receive shares in a new company that would hold some oil sands assets. Bank of Montreal analyst Randy Ollenberger valued those assets at 37 to 73 Canadian cents a share in a note to clients.

Earlier this year, China Petrochemical Corp. agreed to pay $4.65 billion for ConocoPhillips' stake in the Syncrude project, and PetroChina invested C$1.9 billion in Athabasca Oil Sands Corp. projects.

New Gold sank 11 percent, the most in seven months, to C$5.39. The Mexican court denied the company's appeal to overturn an earlier ruling canceling the environmental impact statement for the company's Cerro San Pedro mine.

Crude oil increased 2.9 percent to $74.07 a barrel for its first advance since June 25.

Suncor Energy Inc., Canada's largest oil and gas company and majority owner of Fort Hills, climbed 4.1 percent to C$32.50. Canadian Natural Resources Ltd., the country's second- biggest energy company by market value, rose 2.9 percent to C$35.82.

Athabasca Oil Sands jumped a record 7.7 percent to C$11.84.

Provident Energy Trust, which processes, stores, transports and markets natural gas liquids, advanced 5.3 percent to C$6.53. National Bank of Canada analyst Patrick Kenny began coverage of the company with an "outperform" rating.

Western Canadian natural gas producer Celtic Exploration Ltd. surged 10 percent, the most in 18 months, to C$12.13. Investors may be speculating the company gained from today's Alberta provincial land sale, FirstEnergy Capital Corp. analyst Jill T. Angevine said in a telephone interview.

All 13 S&P/TSX base-metals and coal companies gained as copper climbed for a third day amid shrinking stockpiles.

Teck, a partner with UTS on some oil sands projects, increased 6.2 percent to C$33.65. First Quantum Minerals Ltd., Canada's second-largest copper producer, rallied 7.5 percent to C$59.80. Lundin Mining Corp., which produces base metals in Europe, soared 10 percent, the most in 11 months, to C$3.48.

Broad Gains

While commodity producers led the advance, all 10 S&P/TSX industries climbed, helped by an International Council of Shoppping Centers announcement that US retailers' sales are growing at the fastest pace in four years.

BlackBerry maker Research In Motion Ltd., which got 58 percent of its revenue from the US last year, rallied three percent to C$52.07. Toronto-Dominion Bank, which has 1,039 US branches, increased 1.3 percent to C$71.12.

Potash Corp. of Saskatchewan Inc., the world's largest fertiliser producer, rose for the first time in nine days, gaining 1.8 percent to C$90.95 to end its longest streak of declines in four years. Wheat futures advanced to their highest price since January and corn neared a five-month high.