TSX heads for record close on news from EnCana, RIM;NY also ahead

By Malcolm Morrison, The Canadian Press

TORONTO - The Toronto stock market soared past the previous record high late Monday morning thanks in large part to big news from two market heavyweights.

New York markets were up slightly as oil prices retreated from Friday's record high and investors took in some negative corporate news. Toronto's S&P/TSX composite index surged 142.8 points to 14,663.99, running past the record of 14,625.7 set last July.

The TSX is up almost six per cent so far this year, largely because of record high oil prices, along with higher prices for base metals.

EnCana Corp. shares rose $6.69 to $93.21 following Sunday's announcement that it will split into two companies, one focused on the oilsands and another, expected to keep the EnCana name, concentrating on natural gas.

Research In Motion (TSX: RIM.TO) shares ran ahead $6.39 to $139.74 as it advanced its position in the smartphone market with its new BlackBerry Bold product, providing wider functions and ease of use to fight off Apple's iPhone and other competitors. The new device will be available this summer.

RIM and Microsoft Corp. also announced an agreement to provide Microsoft Windows Live services on BlackBerrys, and RIM joined with Thomson Reuters (TSX: TRI.TO) and Royal Bank (TSX: RY.TO) in a venture to fund BlackBerry software development.

The TSX Venture Exchange was ahead 15.04 points to 2,579.05. The Canadian dollar was down 0.04 cent at 99.4 cents US.

New York's Dow Jones industrial average was up 64.73 points to 12,810.61.

The Nasdaq composite index gained 16.44 points to 2,461.96 and the S&P 500 index was ahead 6.04 point to 1,394.32 after FedEx Corp. late Friday lowered its fiscal fourth-quarter earnings forecast, citing rising fuel costs. Its shares were down 25 cents to US$90.12.

MBIA on Monday posted a US$2.41-billion first-quarter loss, as the struggling bond insurer took heavy charges amid continued deterioration in the credit markets and its shares rose 80 cents to US$10.23.

First-quarter losses at wireless carrier Sprint Nextel more than doubled to US$505 million, as it lost more than one million monthly subscribers but its shares headed up 25 cents to US$9.63.

The TSX energy sector gained 2.3 per cent in the wake of the EnCana announcement while oil prices bounced off early losses. The June crude oil contract on the New York Mercantile Exchange slipped 18 cents to US$125.78 a barrel, after going as low as US$123.86 as the U.S. dollar strengthened against the euro and yen.

Canadian Natural Resources (TSX: CNQ.TO) moved ahead $2.70 to $96.85.

Ivanhoe Energy Inc.'s (TSX: IE.TO) first-quarter net loss widened to US$8.5 million from a year-ago $6.5 million, but the company said preparations for commercial deployment of its heavy oil upgrading technology accelerated. Its shares were down a penny to $2.12.

Compton Petroleum Corp.'s (TSX: CMT.TO) first-quarter profit plunged to $1.6 million from $13.7 million on big foreign exchange loss. Revenue moved down 15 per cent to $162.4 million and its shares were up eight cents to $12.28.

Gold prices reversed direction and the June bullion contract in New York rose $1.30 to US$887.10 an ounce and the TSX gold sector moved up 0.5 per cent. Barrick Gold (TSX: ABX.TO) climbed 34 cents to $39.85.

The financial sector also improved by late morning, rising 0.3 per cent as National Bank (TSX: NA.TO) moved up 46 cents to $52.47.

Home Capital Group Inc. (TSX: HCG.TO) said strong earnings in its mortgage and credit-card lending business led to a 19 per cent rise in first-quarter profit to $25.2 million and its shares climbed $1.70 to $40.

WestJet (TSX: WJA.TO) is following Air Canada and various American carriers in adding fuel surcharges. WestJet said its charges will boost ticket prices by between $20 and $45, amid "unrelenting and unprecedented increases in the cost of fuel over the last year." The carrier's shares were unchanged at $16.30..

Shares in miner Crystallex International (TSX: KRY.TO) shot up 30 cents or 50 per cent to 90 cents. Its shares have been battered since April 30 when it said it had been denied a permit for exploration work at its key Las Cristinas project in Venezuela.

Overseas, Japan's Nikkei stock average rose 0.6 per cent.

London's FTSE 100 added 14.9 points to 6,219.6, Germany's DAX 30 gained 34.73 points to 7,037.9 and the Paris CAC-40 climbed 13.19 points to 4,973.75.