February 16, 2011 / 4:12 PM / 8 years ago

CANADA STOCKS-TSX hits 31-month high as RIM, banks rally

* Hits highest level since July 2008

* TSX ahead 0.6 pct to 14,012.97

* Citigroup raises RIM to “buy”, stock jumps (Adds details)

By Ka Yan Ng

TORONTO, Feb 16 (Reuters) - Toronto’s main stock index marched to its highest level in 31 months on Wednesday on firm energy and financial issues, as well as on a rally by Research In Motion RIM.TO, after Citigroup raised its rating on the BlackBerry maker by two notches.

The TSX index rose above the 14,000 mark for the first time since July 7, 2008, aided by a 3 percent jump by RIM to C$66.69.

Citigroup raised its rating on the company to “buy” from “sell”, saying Nokia’s NOK1V.HE much criticized strategy to embrace Microsoft’s (MSFT.O) operating system was making carriers spend more money promoting the BlackBerry maker. [ID:nSGE71F061]

“There’s been positive reviews on RIM, which is helping the TSX,” said Francis Campeau, a broker at MF Global Canada, in Montreal.

He also noted the TSX’s financial group rallied more than 1 percent to hit its highest level since May 2008, ahead of next week’s start of bank earnings.

Meanwhile, Credit Suisse boosted its rating on Bank of Montreal (BMO.TO) to “neutral” from “underperform” and raised price targets on five other Canadian banks. [ID:nWNAB2415]

Toronto-Dominion Bank (TD.TO) was up 1.6 percent at C$80.50, while Bank of Nova Scotia (BNS.TO) — Credit Suisse’s top pick — was up 0.9 percent at C$60.41.

At 10:40 a.m. (1540 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 83.62 points, or 0.6 percent, at 14,012.97, slightly off its session high at 14,017.42.

While the rise beyond 14,000 was “psychologically good,” said Campeau, “the real key” level will be 15,000, which was the highest point the composite reached just before the financial crisis.

“There’s not going to be much resistance from a technical point of view. Resistance will come in around 14,500 and 15,000, that’s where we might start to see some hurdles or longs will start reducing,” he said.

Energy groups were also solid advancers Wednesday morning, gaining 0.76 percent. Top risers were Suncor Energy (SU.TO), up 2.3 percent to C$42.82, and Canadian Natural Resources (CNQ.TO), ahead 2.4 percent at C$45.76.

But Talisman Energy Inc TLM.TO was a key decliner in the group, falling nearly 2 percent to C$22.41 after the independent oil producer and explorer posted a wider net loss. [ID:nSGE71F05Z]

Rogers Communications (RCIb.TO) was also on the decline as the the company reported below-forecast results, but the stock’s fall was cushioned by news that the communications heavyweight had increased its annual dividend by 11 percent. Rogers was down 0.5 percent at C$34.56. [ID:nSGE71F06W]

$1=$0.99 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson

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