Toronto stocks ended higher Monday spurred by a hot energy sector, while the Canadian dollar plunged against a rising U.S. greenback.

The S&P/TSX composite index finished up 39.02 points, or 0.39%, to close 9,941.79.

Volume was a thin 85 million shares. U.S. markets were closed for the Independence Day holiday.

The loonie closed down 1¢ at US80.61¢. Better-than-expected economic data out of the United States on Friday was seen as the reason behind the loonie’s decline.

On the TSX just three of the 10 TSX ended higher, with the energy sector gaining 2.57%.

Prices for London August Brent crude oil gained 46¢to close at US$58 a barrel, adding to gains made on Friday, when U.S. crude lifted $2.25 to US$58.75.

Nexen Inc. gained $4.30, or 11.56%, to close $41.50 on news that it was spinning its chemical unit off as a trust.

EnCana advanced $1.85, or 3.83%, to $50.18.

The information technology group was down 1.59%. Nortel Networks lost 7¢, or 2.19%, to finish $3.12.

In economic news, the Bank of Canada released its business survey, which indicated businesses were optimistic about the economy and intended to invest more this summer in heavy machinery.

The junior S&P/TSX Venture composite index finished down 1.47, or 0.09%, to close 1,725.36.