Soaring golds buoy TSX; but BlackBerry gets pummeled

Fri Jun 28, 2013 5:19pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index hit a one-week high on Friday as gold-mining shares shot through the roof after bullion rallied, overshadowing a plunge in smartphone maker BlackBerry (BB.TO: Quote).

The gold sector soared more than 8 percent to record its biggest single-day percentage jump in more than 3-1/2 years.

Despite its gain on the last trading day of the second quarter, the index posted its biggest quarterly decline in a year, falling 4.9 percent.

BlackBerry lost more than 26 percent of its market value after its quarterly report offered few signs of a long-promised turnaround. The company posted an unexpected operating loss and gave few details on sales of its make-or-break new line of smartphones, and did not signal a return to profit in the current quarter.

Giving the market support was data that showed Japan's consumer prices stopped falling in May, while labor demand reached its strongest level in five years.

While global markets were hit hard by Fed Chairman Ben Bernanke's hints last week of a tightening monetary policy, investors took heart from another Fed official's comments on Thursday that Fed asset purchases will be more aggressive than outlined last week if U.S. economic growth falters.

The market is starting to realize that the Fed is not likely to put a sharp end to its massive bond buying program, said Sadiq Adatia, chief investment officer at Sun Life Global Investments.

"Bernanke was talking about taking the foot off the pedal, rather than putting the brakes on," he added. "It's loosening the amount that is going in, rather than taking it all out."   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch