TORONTO - Canada's biggest banks and financial institutions gave the Toronto stock market a boost on Monday in an otherwise stagnant session.

The S&P/TSX composite index ended 69.53 points higher to 10,757.43, extending a positive streak that has also seen massive fluctuations of more than a thousand points over the past month.

Financials stole the show by leading the market, with the sector up 2.2 per cent. Sun Life Financial (TSX:SLF) stocks rose 8.8 per cent, or $3.07 to $37.98.

Doug Porter, deputy chief economist at BMO Capital Markets, said financials have been quietly, but steadily, gaining steam, which is making them "one of the quiet stars of the show."

"Financials were the big driver for last week as well, far and away," he said.

"They've made a distinct comeback this year after suffering through a dismal 2008."

"Just the sense that we've likely seen the worst from the economic downturn, it gives investors much more comfort that we've been close to the worst for some of the domestic financial institutions as well."

The Canadian dollar closed at 92.50 cents U.S., up 0.16 of a cent. The loonie briefly rose to 92.78 cents in the morning, its highest level since last October. Over the past two weeks, the currency has risen about five per cent.

Metals stocks lost 0.13 per cent, as Imperial Metals Corp. (TSX:III) announced plans to acquire Selkirk Metals Corp. (TSXV:SLK) in a merger that values the junior miner at about $10.4 million. Shares of Imperial Metals were three cents lower at $4.07.

The TSX energy sector gained 0.17 per cent as the light, sweet crude for September delivery ended 33 cents higher to US$68.38 a barrel on the New York Mercantile Exchange.

Gold stocks weakened 0.47 or cent while the August bullion contract increased 40 cents to US$953.50 an ounce on the Nymex.

The TSX Venture Exchange rose 3.09 point to 1,147.04.

On Wall Street, markets were relatively flat, with the Dow Jones industrials ahead 15.27 points to 9,108.51. The Nasdaq composite rose 1.93 points to 1,967.89 while the S&P 500 index gained 2.92 points to 982.18.

In economic news, the U.S. Commerce Department said new home sales rose 11 per cent in June to 384,000, more than expected and the strongest pace since November 2008. Last week stocks got a lift from a separate report a better than expected sales of existing homes.

Meanwhile, soft drink maker Cott Corp. (TSX:BCB) said the impact of foreign exchange dragged revenue lower in the second quarter even as the company booked a profit of US$33.7 million, its second quarter of positive earnings this year. Shares in the company lost 26 per cent, or $2.15 cents, to $6.16.

Hydrogenics Corp. (TSX:HYG) said Monday its shareholders have approved a refinancing deal that will see Algonquin Power (TSX:APF.UN) convert to a corporation and acquire tax losses from the fuel cell developer. Hydroenics shares were ahead four cents to 56 cents while Algonquin units gained 24 cents to $3.88.

Petrolifera Petroleum Ltd. (TSX:PDP) shares tumbled 14 per cent after the company announced it has suspended production from its La Pinta Number 1 well in Colombia as it tries to resolve a sand blockage problem.

The company said it will evaluate test results and may consider hiring a third-party to farm out the work, because it's expected to cost about US$25 million to fix the problem, which the company said is considerably higher than the original budget. Shares were down 26 cents to $1.56.

Shares of Puma Exploration (TSXV:PUM) doubled in price after the Quebec junior miner said it had found persistent copper-zinc showings at its Turgeon deposit in New Brunswick. The company's stock was up eight cents to 17 cents in heavy trading.

In U.S. earnings, Honeywell International Inc. says its second-quarter profit dropped 38 per cent to $450 million as the company's businesses in troubled sectors like automobiles and construction continued to drag down its results.

Corning Inc. says it earned $611 million in the second quarter on a rebound in demand for glass used in flat-screen televisions. The profit was down from $3.2 billion a year earlier when it recorded a one-time gain of $2.43 billion.

A slew of earnings from Canadian corporations are expected later in the week, including those from Imperial Oil (TSX:IMO), Talisman Energy (TSX:TLM), Petro-Canada (TSX:PCA), Barrick Gold (TSX:ABX), Canadian Pacific (TSX:CP), Rogers Communications (TSX:RCI.B) and lumber giant Canfor Corp. (TSX:CFP).