TSX vaults to new high

Mon May 12, 11:56 AM
TORONTO (Reuters) - The Toronto Stock Exchange's main index climbed into new territory on Monday and rose to a fresh peak, as the energy and technology sectors got a fillip from Research In Motion and EnCana Corp .
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(Reuters)

TORONTO (Reuters) - The Toronto Stock Exchange's main index climbed into new territory on Monday and rose to a fresh peak, as the energy and technology sectors got a fillip from Research In Motion and EnCana Corp .

The Toronto Stock Exchange's S&P/TSX composite index was up 139.97 points, or 0.96 percent, at a record 14,661.16, vaulting past the previous high of 14,646.82.

"This is reflective of how the TSX is driven with the connection to the resources," said Brian Pow, vice-president research and equity analyst at Acumen Capital Partners in Calgary, Alberta.

"I think it is not going to be a top by any means. It is just reflective of where the stock prices are right now."

EnCana and RIM, among the biggest net gainers, set the tone early in the day after EnCana said it planned to split into separate oil and natural gas firms.

RIM boosted the index with news that it will launch a new high-end BlackBerry smartphone, the BlackBerry Bold.

EnCana jumped $6.73, or 7.8 percent, to $93.25, while RIM advanced $6.82, or 5.1 percent, to $140.17. The energy and technology sectors each rallied 2.4 percent.

Suncor Energy added $1.07, or 1.7 percent, to $63.96, as the price of crude bounced to a fresh record above $126 a barrel, before easing back.

In the tech sector, Celestica added 55 cents, or 6.2 percent, to $9.44.

The Toronto benchmark index set its previous record high last July as energy and materials shares benefited from surging commodities prices. Since then, commodities have remained red-hot and have helped the resource-laden index recoup losses amid ongoing worries over the financial and credit markets.

"From a technical standpoint, this is a good signal," said Joe Ismail, a technical analyst at Maison Placements Canada, of the rally. "All those guys that were calling for a bear market rally will be silenced eventually."

But Ismail cautioned the fresh record levels may not be sustainable.

"We are going to have fits and starts," said Ismail. "I wouldn't be surprised if we see profit taking (later in the day), but the important thing is that we close on the plus side."

(Reporting by Scott Anderson and Leah Schnurr; Editing by Bernadette Baum)