* TSX rises 68.56 points, or 0.54 percent, to 12,794.25
* All 10 main sectors advance
* RIM up nearly 11 percent
By John Tilak
TORONTO, Jan 21 Canada's main stock index hit
its highest level in nearly 18 months on Monday, led by a jump
in Research In Motion Ltd shares following a report
that it could license its software.
Canadian stocks also benefited from news on Friday that U.S.
House Republican leaders said they would seek to pass a
three-month extension of federal borrowing authority in the
coming days to buy time for the Democrat-controlled Senate to
pass a plan to shrink budget deficits.
RIM shares rose 10.8 percent to C$17.41 after its chief
executive told a German newspaper the company will explore
strategic alliances with other technology companies once it has
launched its new BlackBerry 10 models. RIM shares earlier jumped
nearly 18 percent to touch their highest level since early
The BlackBerry maker is inching closer to the
much-anticipated launch of its BB10 product lineup, which the
company hopes will revive its fortunes. The stock has roughly
tripled since hitting a low of C$6.10 in September.
"There's a lot riding on Research in Motion. It is really up
to RIM to show investors what it has, that it can come back as a
viable competitor to Samsung and Apple devices," said Serge
Pepin, vice president of investment strategy at BMO Asset
"There are definitely a lot of expectations. RIM cannot miss
anything at this point," he added.
The Toronto Stock Exchange's S&P/TSX composite index
was up 68.56 points, or 0.54 percent at 12,794.25,
after touching 12,798.92, its highest since Aug 4, 2011.
Optimism about an eventual solution in Washington to the
budget impasse added to the broad sentiment.
"In the fullness of time, most people believe that this is
going to get resolved one way or the other," said Rick Hutcheon,
president and chief operating officer at RKH Investments. "The
only real issue is how much angst do we have to get through
along the way. But it will get fixed."
Pepin of BMO said an increase in the spread between the 50-
and 200-day moving averages is "a bullish indicator that this
rally should continue, notwithstanding a bump or two as we get
closer to the real debt ceiling debate."
All 10 main sectors on the index traded higher.
The financial sector rose 0.67 percent and played the
biggest role of any sector in leading the market higher.
Bank of Nova Scotia added 0.83 percent to C$58.34
while Toronto Dominion Bank added 0.57 percent to
The information technology sector was up 1.94 percent,
boosted by RIM's surge.
In other company news, Rona Inc named a new
executive chairman and reshuffled its board of directors on
Monday, after reaching an agreement with its largest
shareholders, who have been calling for changes. Shares of the
Canadian hardware retailer and distributor climbed 3.1 percent