TORONTO (Bloomberg) - Canadian stocks advanced as record crude oil and rising prices for metals and grains boosted speculation that Canada's resource-oriented economy and equity markets can avoid the slowdowns of their US counterparts.

Canadian Natural Resources Ltd. jumped to a record as the price of natural gas rose and CNBC "Mad Money" host Jim Cramer recommended the stock. Potash Corp. of Saskatchewan Inc. extended a record after UBS AG raised its share-price forecast. Bank of Nova Scotia paced a drop in finance shares today, after US bank Wachovia Corp. reported an unexpected loss and cut its dividend, because of sub-prime-infected mortgage holdings.

"Record strength in global commodity and energy prices continues in spite of the US slowdown, and this has translated into soaring growth in Canadian personal and corporate income," Jeff Rubin, strategist at CIBC World Markets in Toronto, wrote in a note. "For Canada, the diminished importance of the American economy to global commodity demand has meant downside protection for its resource rents against a US economic downturn."

The Standard & Poor's/TSX Composite Index gained 0.4 percent to 13,738.6 in Toronto. The nation's stock benchmark has fallen 0.7 percent this year measured in the Canadian currency, compared with a 9.5 percent decline in the US's S&P 500 in US dollars.

Crude oil rose 1.5 percent to a record $111.76 a barrel at the 2.30pm close of floor trading on the New York Mercantile Exchange. Prices are up 76 percent from a year ago. Natural-gas futures, up 34 percent this year, climbed 1.5 percent to $10.053 per million British thermal units in New York yesterday.

Gold, silver, corn and soybean prices advanced.

Canadian Natural rose five percent to a C$82.32, the highest since at least January 1983, when Bloomberg's record begin. The second-largest gas producer in Canada was recommended by CNBC's Cramer, who said the company's stock would rise after a project "gone bad" goes online in the third quarter of the year.

Larger rival EnCana Corp. added 1.9 percent to C$82.02, also the highest since 1983. Suncor Energy Inc., the world's second- biggest oil-sands miner, added 2.7 percent to C$109.75.

OAO Uralkali, the Russian company developing the world's second-largest potash deposit, rose to a record in London trading after saying prices may exceed $1,000 a metric tonne, a fivefold increase from last year.

Potash Corp. gained 2.7 percent to C$185.35. The largest maker of crop nutrients had its share-price target raised by 11 percent to $235 by UBS AG analyst Brian MacArthur, who cited his bank's increased forecasts for potash and other crop nutrients after China stopped all fertiliser exports. It was Potash's eight-straight record.

Smaller rival Agrium Inc. added 6.7 percent to a record C$78.09. North America's third-biggest fertiliser company had its share-price target increased by 9.2 percent to $95 (C$97.10) by UBS's MacArthur.

Jacob Bout at CIBC World Markets in Toronto raised his estimate for Agrium's stock to $110 from $84, and for Potash to $260 from $240, saying in a note that the agricultural cycle driving fertiliser demand is probably "only in the mid stages."

Teck Cominco Ltd. fell two percent to C$45.70. Canada's fourth-largest mining company, agreed to acquire Global Copper Corp. for about C$426 million ($417 million) in cash and stock to add a mine in Chile. Global Copper jumped 25 percent to C$13.91.

Measures of energy and materials producers added two percent and 0.8 percent, respectively. Commodities-related stocks account for half the value of the S&P/TSX. Exports of oil, gas, metals, fertiliser, grains, timber and other commodities make up more than a third of Canada's exports and more than one-tenth of its economy, the world's eighth-largest.

A gauge of financial companies fell 1.1 percent. The index of banks, insurers and brokers has rallied 7.8 percent from a more than two-year low on March 17.

Scotiabank slipped 1.5 percent to C$44.88. Canada's second- biggest lender by assets made an offer to invest in US bank National City Corp., the Wall Street Journal reported last week.

Canadian banks have rallied "too much, too soon" and face significant valuation pressure over the next six months, Dundee Securities analyst John Aiken wrote in a note to clients yesterday.

"Another round of securities losses and a declining fundamental earnings outlook for the US banks, (which begin reporting their second quarter this week) will weigh on valuations, which will once again cross the border and infect Canadian banks," Mr. Aiken wrote.

Aiken cut his recommendations on Bank of Nova Scotia, Toronto- Dominion Bank and National Bank of Canada to "neutral" from "buy".

Royal Bank of Canada, the country's largest bank, fell 1.3 percent to C$45.80. Canadian Imperial Bank of Commerce, the nation's fifth-largest, dropped 2.1 percent to C$65.89.

Toronto-Dominion, the country's third-largest bank, fell 0.1 percent to C$62.97. National Bank, the sixth-largest lender in the country, added 0.3 percent to C$50.36.