UPDATE 4-Toronto stocks hit record high as EnCana, RIM gain

Mon May 12, 2008 5:13pm EDT
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By Leah Schnurr

TORONTO May 12 (Reuters) - The Toronto Stock Exchange's main index sprung to a record high on Monday, buoyed by EnCana's ECA.TO plan to split itself in two and the release of a new BlackBerry smartphone by Research In Motion RIM.TO.

EnCana, Canada's biggest energy company, jumped C$5.68, or 6.6 percent, to C$92.20 after it said on the weekend it will split into a natural gas company and integrated oil sands producer.

The news boosted the oil and gas sector 2.2 percent, helping the S&P/TSX composite index .GSPTSE surpass its previous record high. The benchmark closed up 144.88 points, or 1 percent, at 14,666.07, after climbing as high as 14,695.75 earlier in the day.

Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario, said EnCana's move could be copied by a number of significant energy companies, including Canadian Natural Resources CNQ.TO and Nexen NXY.TO.

"None of them is exactly the same as EnCana, but a number of them have contemplated a similar-type scenario, and that bumps the probability that those companies will be looking at a similar type move," he said.

Canadian Natural rose C$2.51, or 2.7 percent, to C$96.66, while Nexen edged up 30 Canadian cents, or 0.8 percent, to C$38.61.

Tech companies also boosted the benchmark, after RIM said it will launch its new high-end BlackBerry Bold, aimed at its core base of business users.   Continued...