Canadian stocks have soared on Monday and extended their highest level in more than a month. Markets around the globe surged on details of the U.S. government plan to subsidize private investors' purchase as much as $1 trillion in toxic assets on the books of troubled banks.

The S&P/TSX Composite Index has rallied 390.60 points or 4.59% to move at 8,896.54. The index is on pace for its ninth positive close in 10 sessions and its best finish since Feb. 9.

Mining stocks have led the rally with a 7% jump. Among the big names, Teck Cominco (TCK.B.TO) has soared 11.9% and First Quantum (FM.TO) has surged 10%,.

Energy stocks have rallied 7%. Light sweet crude is up $1.65 at $53.72 per barrel as May takes over as the front-month contract.

Petro-Canada (PCA.TO) has soared 21.6% on its $15.6 billion merger deal with Suncor (SU.TO), which has slipped 2.1%. Both companies expect the proposed merger to be completed in the third quarter of 2009. The combined entity will operate corporately and trade under the Suncor name.

Baytex Energy Trust (BTE_U.TO) has dropped 1.5% after the company announced will sell 6.90 million trust units to underwriters at C$14.50 per unit for total gross proceeds of C$100.05 million.

NAL Oil & Gas Trust (NAE_U.TO) is up 2.1% after the company announced it has agreed to acquire Alberta Clipper Energy (ACN.TO) in a deal worth $115 million. Alberta Clipper has dropped 10.2% following the news.

Twin Butte Energy (TBE.TO) is down 1.25% after the company reported a net loss for the fourth quarter of C$4.00 million or C$0.09 per share, compared to net income of C$4.27 million or C$0.15 per share in the year-ago quarter.

Angle Energy (NGL.TO) has jumped 9.7% after the company announced funds from operations for the fourth quarter rose to C$15.69 million or C$0.40 per share from C$7.67 million or C$0.23 per share in the year-ago quarter.

Denison Mines Corp. (DML.TO) has plunged 10.8% after the company announced that Peter Farmer will step down as chief executive officer and director on April 30.

Financials have soared 6.9%, led by a 10% spike for Manulife (MFC.TO). Of the big six banks, CIBC (CM.TO) has added 8.6%, Toronto-Dominion (TD.TO) has added 7.6% and National Bank (NA.TO) has gained 7%.

In other corporate news, Pet Valu (PVC.TO) has added 2.8% after the company reported net income for the fourth-quarter of US$4.3 million or US$0.42 per share, compared to US$4.7 million or US$0.46 per share for the fourth quarter of fiscal 2007.

AbitibiBowater (ABH.TO) is down 7.9% after the company said that its indirect wholly owned subsidiary, Bowater Finance II LLC, has extended the expiration date for its private exchange offers, consent solicitation and concurrent private notes offering until March 25 from originally scheduled date of March 20.

West Fraser (WFT.TO) has lost 1% after the company said it will temporarily curtail plywood production in response to continuing weak demand, which will affect about 600 full and part-time employees.

Agrium (AGU.TO) has added 4.7% after CF Industries Holdings (CF) announced that its board has recommended it reject Agrium's offer to acquire all outstanding shares of CF Industries.

In economic news, Canada's composite leading index for February fell 1.1% after a 0.9% decrease in January, with 9 of the 10 components declining, according to data released Monday by Statistics Canada.

The Obama administration released details Monday of its latest plan to solve the massive, debilitating banking crisis which continues to hold the financial system in its crushing grip.

The Treasury's response involves using up to $100 billion in funds from the $700 billion financial rescue plan passed in 2008 in addition to capital from private investors to generate an estimated $500 billion to purchase the toxic assets.

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