A takeover bid for utility TransAlta Corp. combined with rising oil prices to boost the Toronto Stock Exchange’s main index on Monday.

The S&P/TSX composite index gained 173.23 points, or 1.28%, to close at 13,689.19. Half of the 10 main TSX groups finished higher.

TransAlta shares soared $4.86, or 15.1%, to $37.11 after private U.S.-based firms LS Power Equity Partners and Global Infrastructure said they wanted to buy the Canadian company for $7.8 billion.

The TSX energy and materials sectors rose 2.4% and 2.9%, respectively as commodity prices rose.

As a tropical storm headed into the Gulf of Mexico, oil futures rose for the first time in five sessions, with crude for August delivery up US$2.16 to end at US$131.04 a barrel.

Gold for August delivery rose US$5.70 to end at US$963.70 an ounce on the Nymex.

Canadian Natural Resources climbed $3.43, or 4%, to $89.43, while Agnico-Eagle Mines added $1.51, or 2.2%, to $71.83.

The TSX financial sector was higher for most of the session, lifted by better than expected results from Bank of America. But the sector retreated late in the day, closing down 0.2%.

Royal Bank of Canada slipped 37¢, or 0.8%, at $44.33, while Toronto-Dominion Bank rose 75¢, or 1.3%, to $59.28.

The junior S&P/TSX Venture composite index fell 11.07 points, or 0.48%, to 2,287.67.

The Canadian dollar gained 0.43¢ from Friday’s close to end at US99.86¢.

In New York, U.S. stocks slipped as oil turned higher after last week’s sharp drop overshadowing gains in financial stocks after Bank of America’s stronger-than-expected results.

The Dow Jones industrial average fell 29.23 points, or 0.25%, to 11,467.34. The S&P 500 edged 0.68 of a point lower, or 0.05%, to finish at 1,260.00. The tech-heavy Nasdaq composite index slipped 3.25 points, or 0.14%, to 2,279.53.

After markets closed, Apple Inc. reported a fiscal third-quarter profit of US$1.07 billion, or US$1.19 a share, up from US$818 million, or 92¢ a share, during the same period a year ago. The results beat the estimates of analysts.