CANADA STOCKS-Resource issues lift TSX, RIM weighs

Wed Feb 11, 2009 11:00am EST
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* TSX higher after 2.5 percent drop on Tuesday

* RIM shares tumble on profit outlook (Adds details, quote)

TORONTO Feb 11 (Reuters) - Toronto's main stock index was slightly higher on Wednesday morning, following a 2.5 percent drop in the previous session, led higher by mining companies, which climbed on strength in the price of gold, and some investor bargain-hunting.

The resource laden materials group, home to resource and fertilizer companies, climbed 4.7 percent. The energy sector, up 0.52 percent, also provided support even as the price of oil CLc1 was slightly weaker. [ID:nSYD426357]

Heavily weighted stocks on the upside included Barrick Gold ABX.TO, ahead 5.8 percent at C$48.86, and Goldcorp G.TO, which climbed 7 percent to C$39.43.

The rise comes a day after the resource-laden TSX fell sharply, as North American equity markets tumbled on skepticism over Washington's bank rescue plan, unveiled on Tuesday.

Investors were likely searching for bargains given Tuesday's drop, analysts said.

If Toronto can manage to hold on to gains throughout the day it could be a sign resources are trying to push higher, said Michael Smedley, chief portfolio manager at Morgan Meighen & Associates.

"It is showing that the resources sector is at least somewhat impervious to the influence of the financial stress going on," he said.   Continued...