Toronto stocks continued their rally on Monday. At midday, the S&P/TSX composite index was up 54.52 points, or 0.62%, at 8,801.61. Volume was 127 million shares.

Last week the index rose 1.8%.

Overall, eight of the TSX index’s 10 main indexes were higher, led by a 2.85% jump in the information technology sector and a 0.66% rise in the heavily weighted financial group. Energy issues were up 0.57%.

Technology stocks benefited from a better than expected revenue outlook from Siebel Systems, a U.S.-based software firm.

In Toronto, tech bellwether Nortel Networks rose 12¢, or 2,73% to $4.52.

Cognos gained $1.17, or 2.54%, to $47.27.after announcing it had completed its acquisition of Swedish software maker Frango AB for $53.1 million in cash.

Energy stocks gained ground despite a drop in the price of crude oil after rebels in Nigeria withdrew a threat to target oil operations. Crude oil prices fell 41¢ to US$49.71 after rebels in Nigeria withdrew a threat to target oil operations.

Encana.added 50¢ or 0.84% to $59.75, while Petro-Canada gained 66¢ or 1% to $66.46.

Those gains were tempered by a 1.27% drop in the gold index as the price of the precious metal dropped on a rebounding U.S. dollar and a pullback in oil prices.

Among individual stocks, shares of the new Air Canada pushed higher as they began trading today, gaining more than 25 per cent from their issue price of $20. ACE Aviation Holdings voting shares were up $5.39 to $25.39.

The junior S&P/TSX Venture composite index slid 11.72 points or 0.71% to 1,637.93.

On Wall Street, U.S. stocks rose following the stronger than expected outlook from Seibel and lower prices for oil. Semiconductor stocks also lifted the market.

The Dow Jones industrial average was up 54.13 points or 0.53% at 10,246.78. The S&P 500 Index was up 6.99 points or 0.62% at 1,138.49. The tech-heavy Nasdaq composite index was up 19.78 points or 1.02% at 1,961.98.

In economic news, new orders at U.S. factories fell unexpectedly in August as demand for civilian aircraft weakened, government data showed on Monday. But excluding transportation equipment, the data showed some strength.