Source: The Canadian Press

A positive earnings report in the technology sector as well as merger and acquisition activity among gold miners helped push the Toronto stock market higher Thursday.

The S&P/TSX composite index jumped 161.06 points to 13,841.35 with the market also benefitting from data showing fewer U.S. jobless insurance claims and higher than expected expansion in the American service sector.

The TSX Venture Exchange gained 39.74 points to 2,363.91.

The Canadian dollar was down 0.28 of a cent at 100.91 cents US.

The tech sector was the major support, up almost four per cent after software company Open Text Corp. (TSX:OTC) nearly doubled its second-quarter profit to US$37.1 million. On an adjusted basis, income was $70.5 million or $1.21 per share, up 41% from $50.1 million or 87 cents per share.

That easily beat analyst expectations of US$1.07 per share and Open Text stock surged $5.85, or 11.69%, to $55.90.

The company also announced that it plans to expand its software business by paying $182 million cash to buy Metastorm Inc. of Baltimore, Md.

Elsewhere in the sector, Research In Motion Ltd. (TSX:RIM) was up $1.70 at $62.12.

Gold stocks also advanced as continued unrest in Egypt helped push the April bullion contract on the Nymex up $20.90 at US$1,353 an ounce. Goldcorp Inc. (TSX:G) gained $1.18 to C$41.50 while Barrick Gold Corp. (TSX:ABX) climbed $1.34 to $48.28.

Fronteer Gold Inc. (TSX:FRG) was a major advancer, up $4.07 or 39.71% at $14.32 on news it is being taken over by U.S. mining giant Newmont Mining Corp. in a cash-and-share deal that values the Canadian miner at $2.3 billion. Newmont is offering $14 in cash for each Fronteer share, as well as one common share in a new company, Pilot Gold, which will own certain Fronteer exploration assets.

The financials group climbed 1.42% with Royal Bank (TSX:RY) ahead 67 cents at $54.65, while Manulife Financial (TSX:MFC) ran up 73 cents to $18.65.

Investors also continued to monitor violent anti-government protests in Egypt.

The unrest has left a significant mark on oil prices, which are up almost six per cent over the past week, reflecting continuing battles in Cairo involving supporters and opponents of President Hosni Mubarak. Shipping through Egypt’s Suez Canal has not been disrupted, but investors are also concerned that political instability could spread to oil rich countries in the Middle East.

“It is having a big impact on the crude oil price and so that influences the energy sector in Canada,” observed Colin Cieszynski, market analyst at CMC Markets.

“Some days Egypt is a reason to trade, some days it isn’t and it depends on what the news is. The reality is that it’s the economic trends which are really driving the markets and Egypt and the other countries have a role in certain areas but they’re still not the biggest driver of the markets.”

The energy sector was up 0.57% as oil prices drifted lower with the March contract down 32 cents at US$90.54 a barrel on the New York Mercantile Exchange.

Suncor Energy (TSX:SU) advanced 36 cents to C$41.97 and Imperial Oil (TSX:IMO) climbed 95 cents to $45.90.

The base metals sector edged up 0.88% as March copper was unchanged at US$4.54 a pound. Equinox Minerals (TSX:EQN) jumped 59 cents to C$674 while Teck Resources (TSX:TCK.B) declined 77 cents to $62.93.

New York markets were higher amid positive employment news a day before the release of the U.S. non-farm payrolls report for January.

The number of people applying for unemployment benefits plunged last week, reversing a spike from the previous week largely caused by harsh winter weather. Applications for benefits dropped by 42,000 to a seasonally adjusted 415,000 in the week ended Jan. 29.

Other data showed stronger than expected expansion in the U.S. services sector last month. The Institute for Supply Management’s services index rose to 59.4 in January, compared with 57.1 in December. Analysts had expected a reading of 57.3.

The Dow Jones industrial average was 20.29 points higher at 12,062.26.

The Nasdaq composite index gained 4.32 points to 2,753.88 while the S&P 500 index rose 3.07 points to 1,307.1.

In other earnings news, pipeline operator Enbridge Inc. (TSX:ENB) said fourth-quarter net income was $326 million, or 64 cents per common share, below expectations of 69 cents per share from analysts polled by Thomson Reuters.

Enbridge also said it will boost its dividend by 15% to 49 cents per common share on March 1 and its shares dipped 83 cents to $57.68.

Elsewhere, Maple Leaf Foods Inc. (TSX: MFI) has agreed to bring Gregory Boland, the CEO of significant shareholder West Face Capital, onto its board of directors. West Face currently owns 11.4% of Maple Leaf Foods and had complained that the board was too big and alleged that some directors were too closely involved on a personal level with the McCain family, the controlling shareholder. Maple Leaf shares gained 22 cents to $11.62.