* TSX up 63.19 points, or 0.41 percent, at 15,598.74
* Eight of 10 main index sectors advance
* Tim Hortons climbs 19 percent on news of merger talks
By John Tilak
TORONTO, Aug 25 Canada's main stock index
touched an all-time high before notching a record high close on
Monday as shares of Tim Hortons Inc shot upward after
the coffee chain confirmed it was in merger talks with Burger
Tim Hortons and Burger King said late on Sunday the new
company would be the world's third-largest quick service
restaurant and would be based in Canada.
Tim Hortons, which soared 19 percent, hit a multiyear high
and was the most actively traded stock on the Toronto exchange.
Investors also continued to focus on monetary policy and
speculate about the outlook for interest rates, while processing
recent comments from the U.S. Federal Reserve and the European
The benchmark TSX is up more than 14 percent this year,
making it one of the biggest gainers among its global peers.
Investors are expecting a correction, given the extent of
those advances and signs the market could be getting more
choppy, said Marcus Xu, president and portfolio manager at M.Y.
Capital Management Corp in Vancouver.
"It's not fundamental, it has nothing to do with data. It's
psychology," he said. "The second half of the year is going to
Xu is positive about the Canadian financial, energy and
The Toronto Stock Exchange's S&P/TSX composite index
closed up 63.19 points, or 0.41 percent, at 15,598.74
after earlier hitting an all-time intraday high of 15,623.99.
Eight of the 10 main sectors on the index were higher.
Financials, the index's most heavily weighted sector, added
0.3 percent, with Royal Bank of Canada rising 0.2
percent to C$80.98 and Bank of Nova Scotia climbing 0.9
percent to C$74.19.
Shares of energy companies climbed 0.6 percent. Canadian
Natural Resources Ltd advanced 0.7 percent to C$46.62,
and TransCanada Corp gained 2.6 percent to C$57.45.
In other corporate news, shares of medical marijuana
producers Bedrocan Cannabis Corp and OrganiGram Holdings
Inc jumped as they began trading on the TSX Venture
exchange, with investors expecting fast-growing demand in the
Tim Hortons was up at C$82.03, helping fuel a 2 percent rise
in the consumer discretionary sector.
(Editing by James Dalgleish, G Crosse)