CANADA STOCKS-TSX at record high after Tim Hortons extends rally

Tue Aug 26, 2014 11:05am EDT

* TSX up 41.06 points, or 0.26 percent, at 15,639.80
    * Eight of 10 main index sectors advance
    * Scotiabank slips, BMO gains after lenders report results
    * Tim Hortons surges nearly 9 percent

    By John Tilak
    TORONTO, Aug 26 (Reuters) - Canada's main stock index hit a
record high on Tuesday as shares of Tim Hortons Inc 
extended their rally after the coffee chain said it planned to
merge with Burger King Worldwide Inc in a C$12.64
billion ($11.53 billion) deal.
    The companies said the cash-and-stock agreement would create
the world's third-largest fast-food restaurant group, with
roughly $23 billion in combined annual sales. Tim Hortons shares
jumped 8.7 percent to a multi-year high. 
    The Toronto market received further support from shares of
energy companies, which benefited from gains in the price of
oil.
    The benchmark TSX has climbed nearly 15 percent this year.
    "The market is marching ahead. We'll have to wait until
Labor Day to see any material change in direction," said David
Cockfield, managing director and portfolio manager at Northland
Wealth Management. 
    "It's one of those markets. It seems unshakable," he added.
"But I don't think it'll keep going up forever." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 41.06 points, or 0.26 percent, at 15,639.80.
Eight of the 10 main sectors on the index were higher. 
    Shares of energy producers advanced 0.9 percent, with Suncor
Energy Inc rising 0.7 percent to C$44.61 and Canadian
Natural Resources Ltd jumping 1.7 percent to C$47.41.
    Financials, the index's most heavily weighted sector,
slipped slightly after two of Canada's major banks reported
results. 
    Bank of Montreal gained 0.9 percent, to C$82.53,
after the company reported a stronger-than-expected
third-quarter profit, helped by gains at its Canadian and U.S.
personal and commercial banking units and higher revenue at its
capital markets arm.  
    But Bank of Nova Scotia gave back 2 percent to
C$72.68 after the lender reported quarterly results.
  
    Tim Hortons was up at C$89.16 and was one of the most
heavily traded stocks on exchange. In the previous session, the
stock shot up more than 19 percent.

 (Editing by Grant McCool)
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