TORONTO — The Toronto stock market moved into positive territory Monday morning as commodity prices turned positive while investors took in news that al-Qaida leader Osama bin Laden has been killed, removing a potential threat to global stability. The S&P/TSX composite index gained 82.79 points to 14.027.57, amid positive American economic news while the TSX Venture Exchange lost 11.62 points to 2,240.51. Uncertainty over the outcome of Monday's federal election helped push the Canadian dollar down 0.15 of a cent to 105.51 cents US. President Barack Obama announced late Sunday night that bin Laden had been killed in an operation by special forces in Pakistan. Bin Laden was the mastermind behind the Sept. 11, 2001 terror attacks that led the United States into war in Afghanistan and later Iraq. Financials led TSX advancers as Manulife Financial (TSX:MFC) advanced 43 cents to $17.42 while Scotiabank (TSX:BNS) rose 94 cents to $58.63. The energy sector was ahead 0.65 per cent as the June contract on the New York Mercantile Exchange gained 52 cents to US$114.45 a barrel. Prices had earlier moved as low as US$110.82 a barrel as the American dollar initially picked up strength following the news of bin Laden's death while traders hoped the development could weaken al-Qaida's ability to carry out attacks and destabilize the oil-rich Middle East. Oil prices are still up more than 30 per cent since mid-February amid political uprisings this year throughout the Middle East and North Africa. Suncor Energy (TSX:SU) was up 57 cents to C$44.18 and Cenovus Energy (TSX:CVE) gained 82 cents to $37.20. The gold sector lost 0.62 per cent as bullion prices also turned positive with the June bullion contact on the Nymex ahead $3.10 to US$1,559.50 an ounce. Barrick Gold Corp. (TSX:ABX) lost 50 cents to $47.82 while Goldcorp Inc. (TSX:G) was down 78 cents to $52.11. Copper prices also came back from early lows and the May copper contract in New York was unchanged at US$4.16 a pound. The base metals sector rose 1.3 per cent with Teck Resources (TSX:TCK.B) ahead $1.05 to $52.48 while Ivanhoe Mining (TSX:IVN) gained 41 cents to $25.22. Industrial stocks also advanced with Canadian National Railways (TSX:CNR) ahead 56 cents to $73.95. The TSX health sector fell 1.3 per cent after American drug developer Cephalon Inc. (Nasdaq:CEPH) found a friendly buyer in Teva Pharmaceutical Industries Ltd., beating out a hostile bid from Toronto-based Valeant Pharmaceuticals. Teva is offering US$6.8 billion for Cephalon, substantially above the $5.7-billion bid by Valeant (TSX:VRX). Teva said Cephalon’s board of directors had unanimously agreed to the purchase price of US$81.50 per share in cash. Valeant shares fell $3.23 or 6.6 per cent to $46.67. Investors were pleased with data showing the American manufacturing sector continued to expand during April. The U.S. Institute for Supply Management’s index on the sector fell less than expected from 61.2 to 60.4. The ISM indices remain well above the 50 threshold indicating that factory activity continues to see broad based growth, and consistent with our call for a quick rebound following a disappointing first quarter, said CIBC World Markets economist Krishen Rangasamy. The ISM report and bin Laden's death provided lift for markets in New York where the Dow Jones industrials moved 50.9 points higher to 12,861.44. The Nasdaq composite index climbed 8.88 points to 2,882.42 and the S&P 500 index gained 5.64 points to 1,369.25. In other corporate news, Research In Motion Ltd. (TSX:RIM) shares rose six cents to $46.15 as the company announced two new BlackBerry Bold smartphone models as well as a planned new operating system set to debut next year. Its shares dropped more than 14 per cent Friday after the company cut back its growth estimate for the current quarter. American resource giant Arch Coal is buying rival International Coal Group in an all-cash deal valued at US$3.4 billion. The companies said Monday the new company will form the second largest supplier of metallurgical coal, which is used to make steel, in the U.S. Noront Resources Ltd. (TSXV:NOT), a Toronto-based miner with operations in the Ring of Fire area of northern Ontario, has struck a $29 million financing deal that could sell nearly 14.2 per cent of the company to a unit of Chinese steelmaker Baosteel Group. Its shares rose three cents to 87 cents. The overseas reaction to bin Laden's death was muted amid holidays in Britain, China, Hong Kong, Malaysia, Singapore and Thailand. Japan's Nikkei index gained 1.5 per cent while Frankfurt's DAX advanced 0.58 per cent and the Paris CAC 40 gained 0.3 per cent.

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