Aug. 17 (Bloomberg) -- Canadian oil and gas stocks fell, led by Suncor Energy Inc., as some investors exited this year's best performers. Alcan Inc., the world's No. 2 aluminum producer, gained after a Deutsche Bank AG report that said metals prices will remain strong.

``Oil prices may have peaked for now and we could see a lot of people selling their oil stocks,'' said Shauna Sexsmith, who manages the equivalent of $251 million in mutual funds for MFC Global Investment Management. ``There may be a rotation into other areas of the market.''

The Standard & Poor's/TSX Composite Index shed 10.20, or 0.1 percent, to 8231.29 by 11:44 a.m. in Toronto. The index has slumped 7.5 percent since its 2004 high on April 12 amid concern that record oil prices will discourage spending and crimp economic growth in the U.S., the endpoint for 85 percent of Canadian exports.

Suncor, which mines oil from tar sands in Alberta, declined 70 cents to C$36.49. EnCana Corp., Canada's biggest natural gas producer, slumped 81 cents to C$53.61.

Crude oil futures, which have reached intraday records in 11 of the past 12 sessions, are up 49 percent in the past 12 months. So far this year, an index of oil and gas producers has jumped 9.7 percent for the biggest gain among the S&P/TSX Composite's 10 industry groups. By contrast, the benchmark index has risen 0.2 percent.

Crude for September delivery today rose 0.3 percent to $46.20 a barrel.

Also today, an index of producers of raw materials had the biggest advance among the S&P/TSX Composite's 10 industry groups, rising 0.8 percent. Alcan added C$1.35 to C$55.68. Inco Ltd., the second-largest nickel miner, gained 90 cents to C$44.47.

Copper, aluminum and other base metal prices will probably remain ``strong'' into next year, supported by gains in Asian consumption and declining stockpiles, Deutsche Bank said in an e- mailed report.

``Despite growth concerns linked to a higher oil price, the growth pulse remains high by historical standards, supporting strong global metal consumption growth and inventory outflows,'' the analysts led by John MacKinnon said in the note.

These stocks are making significant gains or losses. The stock symbol is after the company name:

ATI Technologies Inc. (ATY CN) advanced 47 cents, or 2.5 percent, to C$19.30. The world's second-biggest maker of computer- graphics chips said Sony Corp. chose one of its Radeon chips for eight personal computer models in North America and Japan.

Boomerang Tracking Inc. (BMG CN) rallied 65 cents, or 29 percent, to C$2.90. The provider of technology to track and recover stolen vehicles agreed to be sold to LoJack Corp. (LOJN US) for C$2.95 a share, or a total of C$64 million ($49 million), LoJack said in a PRNewswire release.

Miramar Mining Corp. (MAE CN) slumped 23 cents, or 16 percent, to C$1.25. The company said in a CCNMatthews release that the Nunavut Impact Review Board requires further study of the company's Doris North project, and that the project should not proceed on the basis of the current application.

Nortel Networks Corp. (NT CN) North America's largest phone- equipment maker, fell 13 cents, or 2.9 percent, to C$4.35. The company said in a statement that the Royal Canadian Mounted Police is escalating an investigation prompted by Nortel's disclosure in March that it would restate earnings a second time after finding accounting errors. It adds to a criminal probe by federal prosecutors in Texas and regulatory reviews in the U.S. and Canada.

PrimeWest Energy Trust (PWI-U CN) dropped C$1, or 3.9 percent, to C$24.85. The trust agreed to buy Calpine Corp.'s Canadian natural-gas reserves and petroleum assets for C$825 million. The purchase includes Calpine Natural Gas Trust's 25 percent interest in the equivalent of about 80 billion cubic feet of proven reserves.

Tusk Energy Inc. (TKE CN) jumped 41 cents, or 9.7 percent, to C$4.66. The oil and gas company said it plans to convert to an income trust if shareholders approve the plan. One share in Tusk would be worth half a unit in the new trust.

Alcan Inc. (AL CN)
EnCana Corp. (ECA CN)
Nortel Networks Corp. (NT CN)
Suncor Energy Inc. (SU CN)

To contact the reporter on this story: Matt Mossman in Toronto at at mmossman@bloomberg.net

Last Updated: August 17, 2004 11:46 EDT