Canada's benchmark stock index posted its highest close in nearly six weeks on Monday, led by gains for its heavyweight energy sector, while financials and industrials also gained ground.

The Toronto Stock Exchange's S&P/TSX composite index closed up 63.64 points, or 0.42 per cent, at 15,236.67, its highest close since Aug. 8.

It rose more than one per cent last week.

"Things tend to drift up instead of down these days," said Peggy Bowie, senior trader at Manulife Asset Management. "People are looking for returns and income and they have nowhere to put their money."

Stocks on Wall Street also rose, helped by gains for financials ahead of a Federal Reserve meeting this week.

The U.S. central bank is set to announce the start of a plan to trim its US$4.5-trillion portfolio of assets, much of it amassed in response to the 2007-09 financial collapse, marking another milestone in bringing the crisis-era measures to an end.

The energy group added 0.9 per cent, boosted by a 3.4 per cent gain for oil and natural gas producer Encana Corp (ECA.TO) to $13.14.

U.S. crude oil prices edged up 2 cents to settle at US$49.91 a barrel, after hovering near multimonth highs.

The most influential movers on the index also included Potash Corp of Saskatchewan (POT.TO), which gained 3.5 per cent to $23.59, and Agrium Inc (AGU.TO), which was up 3.6 per cent to $132.65.

Last week, Canada's competition watchdog said it would not challenge a proposed merger between the two fertilizer companies.

Nine of the index's ten main sector groups ended in positive territory, including a 0.8 per cent gain for industrials as railroad stocks climbed.

Financials rose 0.3 per cent, led by a 2.1 per cent advance in the shares of Brookfield Asset Management Inc (BAMa.TO) to $49.35.

IGM Financial (IGM.TO) climbed 4.3 per cent to $42.58 after BMO raised its rating to outperform from market perform and increased its target price.

A BMO cut on CI Financial Corp (CIX.TO) to market perform from outperform helped push it down 2.4 per cent to $26.78.

The materials group, which includes precious and base metals miners as well as fertilizer companies, added 0.2 per cent.

The gold mining portion of the group weighed, with Kinross Gold Corp (K.TO) falling 5.3 per cent to $5.57 after saying it would spend more than $1 billion to expand two gold mines.

Barrick Gold Corp (ABX.TO) fell 1.2 per cent to $20.81 as prices for bullion hit a two and a half week low ahead of the Fed meeting and as global equities surged.