CANADA STOCKS-TSX advances after Tim Hortons climbs on deal news

Tue Aug 26, 2014 4:30pm EDT

* TSX up 20.47 points, or 0.13 percent, at 15,619.21
    * Seven of 10 main index sectors advance
    * Scotiabank slips, BMO gains after lenders report results
    * Tim Hortons surges about 8 percent

    By John Tilak
    TORONTO, Aug 26 (Reuters) - Canada's main stock index rose
on Tuesday as shares of Tim Hortons Inc climbed 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 8.1 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
U.S. crude oil.
    The benchmark TSX has climbed nearly 15 percent this year
and has outperformed the S&P 500. 
    "The mood continues to be quite upbeat," said Elvis Picardo,
strategist and vice president of research at Global Securities
in Vancouver.
    "That said, we're getting to pretty elevated levels," he
added. "If investors get a little skittish and take some money
off the table, it wouldn't really be a tremendous surprise."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 20.47 points, or 0.13 percent, at 15,619.21.
Seven of the 10 main sectors on the index were higher.
    Shares of energy producers advanced 0.5 percent, with
Canadian Natural Resources Ltd jumping 1.2 percent to
C$47.16.
    Financials, the index's most heavily weighted sector,
slipped after two of Canada's major banks reported results. 
    Bank of Montreal gained 0.4 percent, to C$82.16,
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 2.4 percent to
C$72.45 after the lender reported quarterly results.
  
    Tim Hortons was up at C$88.71 and was one of the most
heavily traded stocks on the exchange. In the previous session,
the stock shot up more than 19 percent.

 (Editing by Grant McCool and Jonathan Oatis)
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