CANADA STOCKS-TSX jumps on EU summit surprise, but RIM drags

Fri Jun 29, 2012 11:06am EDT
 
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* TSX up 138.28 points, or 1.21 percent, at 11,562.98
    * Energy stocks lead rally as oil rises
    * RIM falls after earnings; new phones delayed

    By Allison Martell
    TORONTO, June 29 (Reuters) - Canada's main stock index
jumped on Friday as commodity-linked shares rose on news euro
zone leaders agreed on measures to cut soaring borrowing costs
in Italy and Spain and recapitalize banks, offsetting a sharp
drop in Research in Motion Ltd.
    Oil and other commodities rallied on news of the deal, a
sign the euro zone is adopting a more flexible approach to
solving a debt crisis that has hampered global growth. 
 
    "Positive news coming out of the European summit very late
last night is pushing up, in fact, global commodity prices and
also riskier assets such as equities," said Patricia Mohr, vice
president, economics and commodity market specialist at
Scotiabank. "I don't think the financial markets were expecting
very much progress."
    At about 10:40 a.m. (1440 GMT) the Toronto Stock Exchange's
S&P/TSX composite index was up 138.28 points, or 1.21
percent, at 11,562.98.
    The energy group played the biggest role in pulling the
index higher, rising 2.7 percent as U.S. crude rebounded from
Thursday's eight-month low. Suncor Energy was the most
influential gainer, rising 3.6 percent to C$29.31.
    Gold and copper rallied, and commodities were broadly
higher. The Thomson Reuters-Jefferies CRB Index was up
2.8 percent. The heavyweight materials group, which includes
gold and base metal miners, rose 1.8 percent.  
    The gains were partly offset by BlackBerry maker Research In
Motion, down almost 20 percent after it reported a
steeper-than-expected quarterly operating loss and deep job
cuts, and delayed the make-or-break launch of its
next-generation phones until next year. 
    RIM did more than any other stock to keep the index from
rising further. It was also the second most heavily traded stock
on the exchange.
    In other company news, Canadian Pacific Railway Ltd 
named Hunter Harrison its chief executive, months after a
boardroom shakeup triggered by William Ackman's Pershing Square
Capital Management felled former CEO Fred Green. Its stock rose
1.5 percent to C$74.59.