TORONTO (Reuters) — The Toronto Stock Exchange's main index just squeaked to a record high close yesterday as commodity prices lifted metals and mining shares.The S&P/TSX composite index closed up 58.82 points, or 0.4 percent, at 14,177.52, about a point higher than its previous record close, set last month.

The benchmark index — which was up more than 90 points yesterday afternoon before giving up some ground — has gained ground in six of the past eight sessions and hovers less than 40 points below its record high, set in May.

"You don't want to step in front of this train," said Neil Andrew, associate portfolio manager at Leeward Hedge Funds.

"You just focus on where the leadership is and there are still several candidates that could be taken out across the resource base ... and we expect that to continue."

Mining and metals issues continued to show the way, propped up by buoyant commodity prices, including record highs in copper and lead.

Uranium giant Cameco Corp. added C$2.09, or 4 percent, to C$54.82. Alcan Inc. , target of a hostile bid from fellow aluminium giant Alcoa Inc. , advanced 15 Canadian cents, or 0.2 percent, to C$91.05.

Barrick Gold, the world's biggest gold producer, was up 64 Canadian cents, or 2 percent, at C$32.80 as the price of bullion the highest level in several weeks.

The TSX materials sector, which accounts for about 17 percent of the overall index, jumped 0.9 percent after gaining 5.4 percent last week.

"The fact that there has been an inordinately large amount of mergers and acquisitions in the materials sector is sparking more than its fair share of interest," said Peter Chandler, senior vice-president at Canaccord Capital.

Both crude oil and natural gas futures gave up earlier gains but remained firm, clearing the way for a 0.5 percent climb in the heavyweight energy sector.

EnCana Corp. led all weighted stocks, up 92 Canadian cents, or 1.4 percent, at C$66.49.

Elsewhere, talk that Canadian Imperial Bank of Commerce may have more exposure to the troubled US subprime mortgage market than previously known spooked some investors and sent the bank's stock down 81 Canadian cents, or 0.8 percent, to C$94.50.

The financials sector edged down ahead of today's interest rate decision by the Bank of Canada. The bank is widely expected to raise its key rate by 25 basis points to 4.50 percent.