The Toronto stock market closed the session in positive territory on Monday, but well off earlier gains, as trader sentiment improved on good manufacturing numbers out of the U.S.
The S&P/TSX composite index ended ahead 52.73 points to 12,370.19 on the first trading day of the fourth quarter. The main index had moved as much as 135 points higher earlier in the session.
The TSX Venture Exchange crept up 4.19 points to 1,338.70, and the Canadian dollar gained US0.05¢ to US101.76¢.
Ben Bernanke defended the Fed's moves to stimulate the economy in a speech to the Economic Club of Indiana. He said the Fed's strategy remains the same, and that it needs to drive down borrowing rates because the economy isn't growing fast enough to reduce unemployment.
The state of the U.S. economy has been a persistent concern, though the latest data from the Institute for Supply Management, a trade group of U.S. purchasing managers, offered a little relief. The index of factory activity rose to 51.5 in September, up from 49.6 in August. A reading above 50 signals expansion and below indicates contraction.
China's Purchasing Managers' Index for September came in at 49.8, marking a further contraction in activity in the region. Meanwhile, the eurozone's manufacturing sector experienced a better month, though its September PMI still contracted for the 14th consecutive month.
On Wall Street, the Dow Jones industrials rose 77.98 points to 13,515.11. The Nasdaq composite index slid 2.70 points to 3,113.53 and the S&P 500 index was up 3.82 points to 1,444.49.
In Canadian corporate developments, Wi-LAN Inc. said it has bought a portfolio of more than 150 patents and patent applications from Alvarion Ltd. for $19 million. Its shares were down 2¢ to $5.51.
Agrium Inc. shares rose nearly 1.7% to $103.69 on the Toronto Stock Exchange. In New York, the stock shot up 2.1% to US$105.53. An investor pushing for changes at Agrium laid out its case publicly for the first time on Monday, arguing it could add US$50 to the Canadian fertilizer company's share price.
And two Canadian companies made changes to their top positions.
Molson Coors Brewing Co. appointed a new chief executive to head its Canadian operations while merging its U.K. business with the recently acquired StarBev. Its shares were off 5%, or $2.45, at $42.55.
SNC-Lavalin's chief executive made his first speech in the new role. Robert Card said he is keeping all options open as he looks to regain investor confidence. Shares fell 35¢ to $37.60.
