The Canadian Press

The Toronto Stock market ended the session in positive territory after investors pulled up energy stocks in hopes that Exxon Mobil’s US$31-billion acquisition of U.S. oil and gas company XTO Energy Inc. could mean other deals in the sector.

The S&P/TSX composite index closed 121.76 points higher to 11,545.69, with shares of nearly every major Canadian energy player higher.

The energy sector was up 2.2% as investors speculated over other possible takeovers within the industry.

The January crude contract on the New York Mercantile Exchange closed the session down 36 cents to US$69.51 a barrel.

Meanwhile, Abu Dhabi’s $10-billion bailout to Dubai gave markets a jolt of optimism. The debt repayments quelled fears that the emirate would default and signal a new round of broader credit problems.

“What we’re seeing is continued small steps towards fixing in the financial system, towards strengthening the various places that are weak,” said Kate Warne, Canadian markets specialist at Edward Jones in St. Louis.

“That certainly doesn’t eliminate all the possible things that can go wrong, but every small step is a step in the right direction.”

TSX gold stocks were up 1.5% as the February bullion contract on the Nymex rose $3.90 to US$1,122.80 an ounce.

The base metals sector launched the biggest gain of the day, up 2.9% as the March copper contract gained 2¢ to US$3.15 a pound.

The Canadian dollar gained 0.05 of a cent to US94.4¢, while the TSX Venture Exchange was up 7.97 points to 1,425.08.

On Wall Street, the Dow Jones industrial average moved up 29.55 points to 10,501.05. The Nasdaq composite index gained 21.79 points to 2,212.10, while the S&P 500 index climbed 7.7 points to 1,114.11.

Citigroup Inc. said it will pay back US$20 billion in bailout money it received as part of the government’s Troubled Asset Relief Program.

The New York-based bank was hardest hit by the credit crisis and rising loan defaults, receiving a total of US$45 billion in government support. It only needs to pay back US$20 billion because the remaining US$25 billion was converted into a 34% ownership stake in the bank earlier this year.

Statistics Canada reported that Canadian industries operated at 67.5% of their production capacity in the third quarter, down marginally from 67.7 in the second quarter.

Also in the energy sector, Husky Energy Inc. (TSX:HSE) shares moved higher after the company said it plans to increase its capital spending by 20% to $3.1 billion in 2010. Shares rose 1.6%, or 48 cents, to $28.98.

Inter Pipeline Fund (TSX:IPL.UN) units gained 11 cents to $10.93 after the company announced it plans capital expenditures of more than $292 million next year, with most of it going toward its oil sands transportation segment.

TMX Group (TSX:X) shares were up 98¢ to $31.34 after it announced it will distribute trading data across U.S. and Europe on NYSE network under new data technology and distribution agreement.

Kirkland Lake Gold Inc. (TSX:KGI) said a borehole collapse widened net losses to $10.3 million for the quarter ended Oct. 31, and weakened revenues to $6.9 million, from $8.8 million last year. Shares rose 16¢ to $9.45.