TORONTO (Bloomberg) - Canadian stocks gained for a third day as the fourth-straight increase in US leading indicators pointed toward an end to the recession.

Royal Bank of Canada, the country's largest lender, increased 0.6 percent, as financial share gained on signs the economy is improving. Research In Motion Ltd., which got 63 percent of its revenue from the US last year, added 2.1 percent. Suncor Energy Inc., Canada's largest energy company, declined 1.2 percent as natural gas prices fell.

"We're in a rising market, and we've got good momentum," said Glenn MacNeill, who helps manage C$250 million as chief investment officer of Lawrence Asset Management Inc. in Toronto. "The momentum that continues to build is being compounded by some positive numbers."

The Standard & Poor's/TSX Composite Index advanced 13.68 points, or 0.1 percent, to 10,700.51. The measure rose yesterday after Canada's index of leading economic indicators advanced for the first time in 11 months.

Since August 11, the S&P/TSX has risen on six of seven days for a 0.6 percent total gain on surging commodity prices and economic data from Europe showing the recession is ending there. The group of 207 Canadian stocks has gained 19 percent this year as commodity prices rebounded on signs the global economy is recovering from the first simultaneous recessions in the US, Europe and Japan since World War II.

The US Conference Board's index of US leading economic indicators rose 0.6 percent in July for the fourth consecutive monthly increase. The median forecast of economists surveyed by Bloomberg News was 0.7 percent.

Canadian wholesale sales rose in June for the first time in nine months, led by automobiles and food products, adding to evidence the country's economy is emerging from its recession. Statistics Canada said wholesale sales in June increased 0.6 percent to C$40.4 billion ($36.8 billion). Economists expected a 0.2 percent increase, based on the median of 14 responses in a Bloomberg survey.

Canadian financial stocks rallied for a third day. Royal Bank added 0.8 percent to C$50.89. The third-largest bank in the country, Bank of Nova Scotia, rose 1.2 percent to C$44.89.

RIM increased 2.1 percent to C$82.02 to contribute the most to the S&P/TSX's gain.

"A lot of people, they're buying this story that the economy has stopped going down, it's bottomed and it's growing again," said Ken McCord, president of Webb Asset Management in Toronto, which manages about C$40 million. "For those people who bought those stories, they're buying the stocks too."

Commodities dipped after the US government said more Americans filed claims for jobless benefits last week, indicating consumer demand will not immediately return to pre-recession levels.

The Reuters/Jefferies CRB Index of 19 raw materials fell 1.2 percent.

Applications rose to 576,000 in the week ended Aug. 15 from a revised 561,000 the week before. Economists forecast claims would fall to 550,000, according to the median of 39 projections in a Bloomberg News survey.

Natural gas plunged 5.6 percent in New York after the US Energy Department reported supplies of the fuel last week were 19 percent higher than the five-year average.

Suncor, which this month purchased Petro-Canada, dropped 1.2 percent to C$34.48. EnCana Corp., Canada's largest natural- gas producer, declined 0.5 percent to $56.58.

Enerplus Resource Fund, which owns oil and gas-producing properties, sank 3.7 percent to C$21.75. The income trust has agreed to buy a stake in the Marcellus shale natural gas field in the eastern U.S. for $406 million. The company also said it will issue 9.3 million units at C$21.65 each, a 4.2 percent discount to Wednesday's close.

Bombardier Inc. tumbled 3.9 percent to C$3.98. The world's third-largest commercial-jet maker terminated an order agreement from European private-plane service Jet Republic for 110 Learjet 60 XR aircraft valued at about $1.5 billion.

Mining company New Gold Inc. led stocks on the S&P/TSX with a 5.8 percent jump to C$4, its highest price since October. Analyst Richard Gray of Blackmont Capital Inc. raised his target price for the stock 12 percent to C$4.75, saying the Vancouver company "is emerging as the go-to consolidator in the gold sector".