UPDATE 3-Toronto stocks boosted by optimism over RIM

Thu Apr 3, 2008 5:04pm EDT
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(Updates with official closing numbers, adds details, quotes)

TORONTO, April 3 (Reuters) - The Toronto Stock Exchange's main index closed moderately higher on Thursday, pulled up by robust results from Research In Motion RIM.TO, but fell back from earlier gains as energy and gold-mining stocks weakened.

Shares of RIM jumped C$5.79, or 4.9 percent, to C$123.42 amid enthusiasm over the BlackBerry-maker's better-than-expected fourth-quarter results, as well as the rosy outlook it provided.

Gold producers held the benchmark back, sliding 1.8 percent, even though the price of gold pushed above the $900 level. Centerra Gold CG.TO fell C$1.14, or 8.5 percent, to C$12.30, and Barrick Gold ABX.TO was off C$1.01, or 2.3 percent, to C$43.41.

"In Canada, we have the excitement over RIM, which probably has taken over for today," said Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc in Vancouver, British Columbia.

"But one company doesn't make up the entire index, so I think after the initial exuberance dies down a bit, you get what you have (today)."

The S&P/TSX composite index .GSPTSE closed up 37.15 points, or 0.27 percent, at 13,551.29 with half of its 10 main sectors in positive territory. The index climbed as high as 13,633.44 earlier in the session.

Potash Corp of Saskatchewan POT.TO also helped pull the index up as it jumped C$5.47, or 3.4 percent, to C$168.67. The move helped the materials sector rise 0.6 percent. Inmet Mining IMN.TO was up C$3.10, or 3.8 percent, at C$83.90.

Gains were offset as the energy sector fell 0.7 percent, while the price of crude weakened. Imperial Oil IMO.TO was off C$1.19, or 2.2 percent, at C$52.55, and Suncor Energy SU.TO slid 75 Canadian cents, or 0.7 percent, to C$100.05.

Consumer-related stocks also weighed on the index, with the consumer discretionary and staples groups were down 1 percent and 0.5 percent respectively.

($1=$1.00 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)