The TSX added to its midday gains, after resource stocks narrowed their earlier losses and industrials continued their bull run.
The S&P/TSX composite index grew 131.26 points, to conclude Monday at 14,862.76
The Canadian dollar inched up 0.08 cents to 78.26 cents U.S.
The gain in the Toronto stock market's benchmark TSX index on Monday follows a 1.5% drop the previous week, when investors speculated the U.S. Federal Reserve might soon opt for an interest rate increase. The Fed is set to release a statement later this week.
The industrials group advanced, with Canadian National Railway up $1.62, or 1.9% to $87.99, due to its announcement of a private share buyback agreement with an arm's-length third-party seller.
Utilities advanced with Algonquin Power shares rallying 67 cents, or 7.9%, to $9.17, which stems from the power producer's better-than-expected quarterly earnings.
The health-care sector proved more robust, as Valeant Pharmaceuticals added $6.81, or 2.7%, to $259.10, having received acceptance for its proposed acquisition of Salix Pharmaceuticals.
In resources, both the energy and mining sectors cut their midday losses. Pacific Rubiales Energy was still the most actively traded stock, though its share prices went south 43 cents, or 13.9% to $2.66, while Barrick Gold ducked lower six cents to $13.50.
On the economic front, Statistics Canada reported that Canadian investors reduced their holdings of foreign securities by a monthly record $10.8 billion in January, following a $13.9-billion investment in December.
Meanwhile, foreign investors resumed their acquisitions of Canadian securities by adding $5.7 billion worth to their portfolios.
ON BAYSTREET
The TSX Venture Exchange shed 0.76 points to 663.84
All but three of the 14 Toronto subgroups were higher on the day, with health-care surging 1.8%, while industrials and consumer staples forged ahead 1.5% each.
The three laggards were metals and mining, skidding 0.9%, global base metals, down 0.3%, and energy, off 0.2%.
ON WALLSTREET
U.S. stocks traded more than 1% higher on Monday as investors eyed weakness in the dollar and oil prices ahead of Wednesday's key Fed meeting.
The Dow Jones Industrials leaped 228.11 points, or 1.3%, to finish at 17,977.42.
The S&P 500 hiked 27.79 points to 2,081.19. The NASDAQ index added 57.75 points to 4,929.51
Valeant Pharmaceuticals agreed to buy Salix Pharmaceuticals for $173 U.S. a share, beating out Endo's offer.
Walgreens Boots Alliance hit a record high following news after the bell on Friday that the firm will join the NASDAQ 100 on March 23.
MSG Chief Executive Officer Tad Smith has left that job to take the CEO job at Sotheby's. He'll be replaced on an interim basis at MSG by James Dolan, the president and CEO of MSG parent Cablevision and the Executive Chairman of MSG.
UBS cut earnings estimates for Microsoft, citing weaker-than-expected PC demand, ongoing mobile challenges, and the impact of foreign currency.
Scripps Network Interactive struck a deal to buy a majority stake in Polish broadcaster TVN for $615 million U.S.
A judge gave preliminary approval to the settlement of a lawsuit by Hewlett-Packard shareholders over its ill-fated acquisition of British software firm Autonomy. HP bought Autonomy for more than $11 billion U.S. in 2011, but then had to take an $8.8-billion U.S. writeoff a year later.
Netflix was downgraded to sell from hold at Evercore, pointing to an intensely competitive environment for the video streaming service.
BP will invest $12 billion U.S. in Egypt in a project that will produce the equivalent of three billion barrels of oil.
The Federal Open Market Committee holds its March meeting over the next two days, with the release of its statement on Wednesday.
Investors are watching to see if the key word "patient" remains in the statement, an indication of when short-term interest rates might go up.
The U.S. dollar index fell nearly 1% on Monday to trade briefly below 100. The index gained nearly 3% in the last week as the euro dipped to 12-year lows below $1.05.
Home builder confidence fell two points to 53 in March, down from a high of 59 last September.
Before the bell, the Empire State Index posted 6.90 for March, below February's 7.78. Industrial production rose 0.1% in February, below expectations, with capacity utilization slightly lower at 78.9%.
Prices for 10-year U.S. Treasuries gained ground, lowering yields back up to 2.10% from Friday’s 2.11%. Treasury prices and yields move in opposite directions.
Oil prices subsided 96 cents to $43.88 U.S.
Gold prices eked up 40 cents to $1,152.80 U.S.
