TSX drops on weak resource shares, BlackBerry doubts

Thu Apr 11, 2013 6:11pm EDT
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By Cameron French

TORONTO (Reuters) - Canada's main stock index fell for the first time in four sessions on Thursday as energy and mining stocks were hurt by declining prices and weak investor sentiment, while BlackBerry (BB.TO: Quote) plunged on doubts about the company's recovery plan.

BlackBerry ended the session down 7.4 percent at C$13.82, making it easily the weakest performer on the S&P/TSX composite index .GPSTSE as analysts called into question whether the company's new BlackBerry 10 smartphones can return it to long-term profitability.

But the main weight on the index came from the energy and mining sectors, down 0.68 percent and 0.97 percent respectively.

Both segments have been volatile this year and mining issues have been in near-steady decline, adding to the TSX's underperformance versus comparable U.S. indexes.

"Despite the vastly improved valuations from a year ago, investors are still not biting. There's no rush to get into the sectors here, materials and energy," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

Gold stocks led the mining group lower as prices for the yellow metal weakened early in the session. Kinross Gold (K.TO: Quote) dropped 3.2 percent to C$6.88, while copper miner First Quantum Minerals (FM.TO: Quote) slid 1.8 percent to C$18.88.

Barrick Gold (ABX.TO: Quote) gained 0.8 percent to C$25.00, but that followed an 8.7 percent drop on Wednesday after a Chilean court ordered the company to suspend construction of its massive Pascua-Lama project.

Weak commodity prices also hit the energy group as oil weakened after several organizations cut their global demand outlook for the commodity. Husky Energy (HSE.TO: Quote) slid 1.8 percent to C$29.38, while sector heavyweight Suncor Energy (SU.TO: Quote) retreated 1.5 percent to C$29.68.   Continued...

Bay Street signs are seen in the heart of the financial district in Toronto, August 17, 2009. REUTERS/Mark Blinch