Toronto stocks rebounded from earlier losses to close higher Monday. The S&P/TSX composite index ended up 26.72 points, or 0.28%, to 9,585.22. Volume was 313 million shares.

Seven of the 10 TSX main subgroups finished higher with gains by the energy, financial services and industrials groups.

The telecoms sector led the way higher, rising 1.68%, as Canada’s two biggest phone companies notched gains.

The sector rose on news that Verizon Communications Inc. said it would buy U.S. long-distance telephone company MCI Communications Inc. in a deal worth US$6.75 billion, giving Verizon entry into the market serving large corporations.

The tech, health-care and utilities sectors eased lower.

In earnings news, George Weston reported a fourth-quarter loss, partly because of an impairment charges and restructuring costs.

Weston shares fell 64¢, or 0.56%, to close at $114.25.

Brascan reported a weaker fourth-quarter profit on Monday, but raised its quarterly dividend by 7%.

Brascan shares dipped 19¢, or 0.41%, to $45.80.

Ipsco saw its fourth-quarter earnings surge on record revenues thanks to surging steel prices and increased its dividend. Ipsco shares fell $1.23, or 2.03%, to $59.27.

The junior S&P/TSX Venture composite index edged up 0.72 of a point to end the day at 1,888.15.

U.S. stocks ended little changed on Monday, as a 4.2% rise in Apple Computer helped lift tech stocks, but insurer American International Group limited the Dow’s advances.

AIG fell $2.03 to US$71.09 after it said it received new subpoenas from New York Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commission related to insurance products that might have helped companies smooth earnings.

At close, the Dow Jones industrial average was down 4.88 points, or 0.05%, at 10,791.13 and the S&P 500 Index was up just 0.84 of a point, or 0.07%, at 1,206.14. The tech-heavy Nasdaq Composite Index was up 6.25 points, or 0.30%, at 2,082.91.