CANADA STOCKS-RIM, resources drag TSX to 7-month low

Fri Jun 17, 2011 5:00pm EDT
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   * TSX ends down 63.18 points, or 0.49 pct, at 12,789.95
 * 8 of 10 main groups lower; energy, materials, techs weigh
 * RIM down 20 percent on disappointing earnings
 (Updates to close, adds comments)
 By Trish Nixon
 TORONTO, June 17 (Reuters) - Toronto's main stock index
closed at its lowest level in seven months on Friday, dragged
down by a sharp selloff in Research In Motion RIM.TO and
sliding resource shares.
 RIM plunged more than 20 percent to C$27.24 after reporting
disappointing results and forecasts late Thursday, prompting
analysts to downgrade the BlackBerry maker's stock and cut
price targets. [ID:nL3E7HH1AW]
 "I think RIM set the tone for Canada pretty much," said
John Kinsey, portfolio manager at Caldwell Securities. "They
disappointed pretty much everybody and it's certainly showing
in the stock performance."
 Shares of Celestica CLS.TO, whose major customer is
Research In Motion, slid 7.3 percent to C$7.91 after Paradigm
Capital lowered its share price target on the contract
electronics manufacturer. [ID:nL3E7HH263]
 Energy issues fell almost 1 percent, as U.S. crude futures
slumped on fears about Greece's debt crisis and a slowing U.S.
economic recovery. [O/R]
 Suncor Energy SU.TO -- down 0.9 percent at C$37.17 -- and
Canadian Natural Resources CNQ.TO -- off 0.9 percent at
C$37.99 -- were among the heaviest laggards.
 "There really isn't much to cheer about," added Kinsey.
"The bear market has taken hold here and it's got a pretty
strong grip."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE  ended down 63.18 points, or 0.49 percent, at
12,789.95. It was the weakest close since Nov. 16.
 The index marked the 11th loss in 13 sessions this month.
It was down 5.4 percent for the week and 7.3 percent for the
month. Year to date, the TSX is almost 5 percent lower, and off
more than 10 percent from the 2011 high reached in March.
 Eight of the index's 10 main groups were lower, including
technology, down almost 5 percent. Materials fell 0.4 percent,
led by Potash Corp POT.TO, the second heaviest decliner. It
lost 2.8 percent to C$49.55.
 Financials also drifted lower by the close, falling 0.1
percent. Royal Bank of Canada RY.TO however, remained the
most influential gainer, climbing 1.2 percent to C$54.33, after
reports said it may have found a buyer for its U.S. retail
banking operations. [ID:nN17173029]
 Canadian National Railway CNR.TO was up 0.4 percent at
C$73.41, making it the second most influential gainer on the
index. The country's biggest railway rebounded after its shares
fell on Thursday on news that it will sell assets of an
indirect subsidiary and enter a 10-year coal transportation
agreement. [ID:nL3E7HG284]
 Earlier in the session, the TSX had rallied along with
global investor sentiment after leaders of France and Germany
said they were united behind a new aid deal to save Greece from
default. [MKTS/GLOB]
 "It will be interesting if in fact they do come up with
something on the weekend, then we might have a better day on
Monday," added Kinsey. "I think the market liked what they
heard but there wasn't enough concrete news to sustain it."
 Also weighing on market confidence was data showing U.S.
consumer sentiment fell this month, while the IMF cut its
forecast for U.S. growth this year. [ID:nN17179878]
 Ian Nakamoto, director of research at MacDougall,
MacDougall & MacTier, noted the TSX could have further to slide
before hitting a trough and turning back around at the end of
the summer or sometime in the fall.
 "If economic conditions improve, if Greece -- some way or
another people feel comfortable about the situation -- and
economic numbers start to do better, then I think we could
rally," he said."
 ($1=$0.98 Canadian)
 (Additional reporting by Claire Sibonney; editing by Rob