January 14, 2013 / 4:43 PM / 6 years ago

CANADA STOCKS-TSX hits 10-month high, RIM leads pack

* TSX rises 7.75 points, or 0.06 percent, to 12,609.93
    * Index hits highest point since March 2012
    * RIM shares soar on BB10 hopes

    By John Tilak
    TORONTO, Jan 14 (Reuters) - Canada's main stock index rose
to a 10-month high on Monday, led by an 11 percent rise in
Research In Motion Ltd, as investor optimism over the
upcoming launch of its BlackBerry 10 devices gained momentum.
    Strength in the materials sector, which includes mining
stocks, further supported the market, while volatile oil prices
were a drag on the energy sector and kept the gains in check.
    RIM shares were consolidating a 13-percent gain made on
Friday. The stock was up 11 percent at C$14.75. 
    "The investor confidence is brought about simply because of
hope, and hope that the new BlackBerry 10 is going to be an
answer to their prayers," said Fred Ketchen, director of equity
trading at ScotiaMcLeod.
    "There has been some talk that this is a revival of RIM.
We'll have to wait and see," he added.
    At midmorning, the Toronto Stock Exchange's S&P/TSX
composite index was up 7.75 points, or 0.06 percent,
at 12,609.93, after touching 12,636.68, its highest since March
5, 2012. Five of the 10 main sectors of the index were trading
    Miner Goldcorp Inc added 0.7 percent to C$36.47, and
Cameco Corp gained 2.3 percent to C$20.63. A rise in
commodity prices helped support the materials group.
    Canadian miner Alamos Gold Inc said it will buy
Aurizon Mines Ltd for about C$780 million ($793
million) in cash and stock to get access to Aurizon's only
operating gold mine, Casa Berardi, in northern Quebec. Aurizon
shares jumped 36 percent to C$4.63. 
    Russia's state uranium firm agreed to pay $1.3 billion to
take Canada's Uranium One Inc private, as the successor
to the Soviet Union's nuclear industry seeks to strengthen its
grip on supplies. Uranium One's stock rose 15 percent to C$2.78.
    The energy sector was down 0.2 percent, with Talisman Energy
Inc falling 1.6 percent to C$11.90 and Canadian Natural
Resources Ltd slipping 0.4 percent to C$29.68. Oil
prices were volatile, with Brent crude rising to $111 on supply
concerns then trading lower. 
    In other company news, shares of Harry Winston Diamond Corp
 rose 6 percent on the company's plans to sell its
high-end watches-to-necklaces division to Swatch Group in a $750
million cash deal that expands the Swiss watchmaker's luxury
offering and lets the Canadian group concentrate on its diamond
    Investors were also awaiting comments from Federal Reserve
Chairman Ben Bernanke, who will later in the day speak on U.S.
monetary policy, recovery from the global financial crisis and
long-term challenges facing the American economy.
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