North American stock exchanges surged forward Wednesday, setting fresh all-time highs, as investors reacted positively to mergers and acquisition news.

The S&P/TSX composite index gained 83.70, or 0.63%, to 13,288.16.

All 10 TSX main groups ended higher, with the materials sector spiking 1.23%.

Algoma Steel rose $5.67, or 12.89%, to $50.35 after the company said it was the takeover target of a German steelmaker.

The energy sector gained 0.22%.

Light, sweet crude lost 1¢ to close at US$57.99 a barrel.

Imperial Oil Ltd. gained 15¢, or 0.36%, to $42.38.

The gold sub-sector moved up 0.39%.

Kinross Gold Corp. gained 26¢, or 1.69%, to $15.69.

Bullion futures gained 60¢ to close at US$671.40 an ounce.

The Canadian dollar closed up 0.15¢ to US85.98¢.

The S&P TSX Venture Exchange moved up 22.48, or 0.74%, to 3,064.26.

In New York, markets surged as news of possible mergers, including Anheuser-Busch Cos. possible tie-up with Belgian-Brazilian brewer InBev, boosted investor confidence.

The Dow Jones industrial average closed up 23.15 points at 12,765.01, besting the all-time record set in the previous session. The S&P 500 inched ahead 1.51 points to 1,456.81, while the Nasdaq composite index gained 8.72 points to 2,497.10.