TORONTO (Reuters) - The Toronto Stock Exchange's main index ended higher as shares of mining companies got a big boost from news that Xstrata Plc sweetened its take-over offer for LionOre Mining International.

The S&P/TSX composite index , which gave back some of its earlier gains, closed up 31.36 points, or 0.23 percent, at 13,934.64.

"With the index still very close to its all-time record of 14,000, investors are still in the mood to take profits, which is why you're seeing a late-hour decline," said Elvis Picardo, investment strategist at Northern Securities in Vancouver.

"But overall the trend is still positive because mergers and acquisitions activity continues to be red hot."

Canada's LionOre Mining jumped C$3.16, or 13.3 percent, to C$26.86 after London-listed Xstrata boosted its take-over offer to a total value of C$6.2 billion, trumping a bid from Russia's Norilsk Nickel.

The bid helped to boost other mining companies including Teck Cominco, which rose 23 Canadian cents, or 0.5 percent, to C$45.36. Overall, the resource-laden materials group was up 0.7 percent.

Tame inflation data in the United States helped to buoy the market, pushing the heavyweight financial services sector up 0.4 percent.

Figures Tuesday showed US consumer prices advanced 0.4 percent in April on a continued rise in energy and food prices, but that was below expectations and painted a stable inflation picture.

"Most of this upmove in both the US and Canada has largely been predicated on rates actually going down from current levels, or at least staying stable," Picardo said.

"So any time the market gets anything to buttress that expectation, you see stocks do well. Conversely, any time you see anything that suggests inflation is still out there the markets take a dip."

Shares of Bank of Nova Scotia were up 46 Canadian cents, or 0.9 percent, at C$53.80, while Manulife Financial rose 30 Canadian cents, or 0.8 percent, to C$39.50.

Given some of the strength in mining and financials sectors, it would not be surprising to see a slight pullback, said Gavin Graham, chief investment officer at Guardian Group of Funds.

"The market has done well so far this month and it would not be unreasonable to see people saying, hey, let's maybe lock in some of these profits," Graham added.