CANADA STOCKS-TSX weighed by global worry, but RIM shines

Fri Sep 28, 2012 11:14am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX down 69.62 points, or 0.37 percent, to 12,293.78
    * Spain optimism fades, U.S. data reminds of slow global
    * RIM jumps 13 pct after narrower-than-expected loss
    * Index on track for Q3 gain of 6 percent

    By Alastair Sharp
    TORONTO, Sept 28 (Reuters) - Canada's main stock index fell
on Friday as investors locked in gains on the last day of the
quarter amid concern about instability in Spain, though shares
of Research In Motion Ltd surged after its results.
    Spain's borrowing costs rose back above 6 percent as
optimism about the country's debt-fighting plans faded and ahead
of the results of a stress test of its crippled banks, while
business activity in the U.S. Midwest shrank for the first time
since September 2009.
    "There is a hot and cold sense to what's going on in Europe.
They're taking two steps forward and one step back," said Paul
Harris, portfolio manager at Avenue Investment Management. "That
kind of volatility definitely affects what's going on in the
rest of the world."
    "The other thing is numbers coming out of the U.S.; some of
them are good, some of them are bad, all it amounts to is
relatively slow growth," Harris said. 
    By 10:45 a.m. (1445 GMT) the Toronto Stock Exchange's
S&P/TSX composite index had lost 69.62 points, or 0.37
percent, to 12,293.78, putting it on track for a 6 percent gain
for the third quarter.
    Losses were broad, with energy and banking stocks weighing
most heavily. Canadian Natural Resources fell 1.8
percent to C$30.27 and Royal Bank of Canada was off 0.7
percent at C$56.30.
    By far the most positive story was RIM, which jumped 13
percent to C$7.86. It surprised a pessimistic audience after the
close of trading Thursday with news of a bigger cash pile and a
smaller-than-anticipated loss, and said it had beat revenue and
shipment expectations thanks to strong BlackBerry sales in
emerging markets such as Indonesia and India.