CANADA STOCKS-TSX hits record high as Tim Hortons jumps

Mon Aug 25, 2014 10:55am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX up 45.41 points, or 0.29 percent, at 15,580.96
    * Eight of 10 main index sectors advance
    * Tim Hortons climbs 20 percent on news of merger talks

    By John Tilak
    TORONTO, Aug 25 (Reuters) - Canada's main stock index
reached a record high on Monday as shares of Tim Hortons Inc
 shot up after the coffee chain confirmed it was in
merger talks with Burger King.
    Tim Hortons and Burger King said late on Sunday the new
company would be the world's third-largest quick service
restaurant. It would be based in Canada. 
    Tim Hortons, which jumped 20 percent, hit a multi-year high
and was the most actively traded stock on the exchange.
    Investors continued to focus on monetary policy and
speculate about the outlook for interest rates, processing
recent comments from the U.S. Federal Reserve and the European
Central Bank.
    The benchmark TSX is up more than 14 percent this year,
making it one of the biggest gainers among its global peers.
    "Valuations are very expensive," said John Ing, president of
Maison Placements Canada. "While the markets are making new
highs, the realization that it is a function of the money
printing that central banks have gone on is not a secret."
    "The sentiment has been quite cautious, and that bodes well
for the market," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 45.41 points, or 0.29 percent, at 15,580.96.
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 0.4
percent to C$81.08 and Bank of Nova Scotia climbing 0.5
percent to C$73.86.
    Shares of energy companies climbed 0.3 percent. Canadian
Natural Resources Ltd advanced 0.6 percent to C$46.55,
and TransCanada Corp gained 1.6 percent to C$56.89.
    Tim Hortons was up at C$82.83, helping fuel a 1.9 percent
rise in the consumer discretionary sector. 

 (Editing by James Dalgleish)