TORONTO (Bloomberg) — Canadian stocks rose for a third day, led by of energy producers, including Talisman Energy Inc., on speculation recent declines in their shares were unjustified. Financial shares, such as Manulife Financial Corp., advanced.Some energy companies are “screaming buys” after a recent pull-back on abnormally warm weather in the US, while financial companies offer stability that can offset volatility in commodity shares, said Jackee Pratt, who helps manage $712 million at Mavrix Fund Management Inc. in Toronto.

“There’s global demand for oil even if it slows in the US a bit. Supply and demand still supports higher oil prices,” said Pratt. “Financial shares offer greater downside protection than commodity stocks.”

The Standard & Poor’s/TSX Composite Index climbed 76.55, or 0.6 percent, to 12,755.36 in Toronto. The benchmark has risen 2.4 percent in three days after dropping 3.5 percent this year before January 10, as falling prices of oil and metals dragged down commodity stocks. US equity markets were closed today for the Martin Luther King Jr. holiday.

Talisman Energy climbed 33 cents to C$18.54. Shares of the company that produces oil and gas in the North Sea lost 8 percent in the first two weeks of 2007. Suncor Energy Inc., the world’s second-biggest oil-sands miner, gained C$1.37 to C$86.89.

Canadian Natural Resources Ltd., the country’s second- biggest natural-gas company, increased C$1.96 to C$56.30. The stock lost 13 percent in the two weeks ended Jan. 12.

Petro-Canada gained 68 cents to C$44.08. Oil production for Petro-Canada and partners from Canada’s Hibernia field, the country’s largest, may be cut for up to eight weeks to repair a faulty electricity generator.

Crude oil for February delivery fell 18 cents to $52.81 a barrel in electronic trading in New York, amid doubts the Organization of Petroleum Exporting Countries will cut output enough to prop up prices as demand eases during a mild winter. The Nymex’s trading floor was closed for the holiday.

A measure of energy stocks accounts for more than a quarter of the S&P/TSX’s value. It rose 1.3 percent today, the most among 10 industry groups in the stock benchmark. The energy group has still retreated 4.5 percent in 2007 as energy prices declined on reduced heating-fuel demand due to unseasonably warm weather.

An index of financial shares, the biggest in the S&P/TSX with a 33 percent weighting, added 0.4 percent. Manulife Financial, Canada’s biggest insurer, advanced 21 cents at C$39.50. Smaller rival Sun Life Financial Inc. gained 73 cents to C$49.45.

“These stocks are showing earnings growth into 2008,” Pratt said. Shares of Manulife have a “15 percent to 20 percent return potential over the next 12 months to 18 months.”