CANADA STOCKS-Golds, RIM help TSX fight back from early drop

Wed Aug 3, 2011 4:45pm EDT
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 * TSX ends up 63.71 points, or 0.5 percent, at 12,816.03
 * Hit lowest level since mid-November 2010 earlier in day
 * Seven of 10 index sectors end higher
 * Global services data disappoints
 (Updates to close, adds details, quotes)
 By Claire Sibonney
 TORONTO, Aug 3 (Reuters) - Toronto's main stock index
closed higher on Wednesday, dramatically reversing a plunge to
an eight-month low earlier in the day, as Research In Motion
RIM.TO and precious metal miners rallied, and recently
battered financial shares recovered slightly.
 Among the four most heavily weighted gainers, Royal Bank of
Canada RY.TO rose 2 percent to C$51.30, Toronto-Dominion Bank
TD.TO added 1.9 percent to C$76.79, Bank of Nova Scotia
climbed 1.4 percent to C$53.28, and Barrick Gold Corp ABX.TO
advanced 1.4 percent to C$47.31.
 The TSX had ended lower in five of the past seven sessions
and its rebound on Wednesday followed a path that paralleled
U.S. markets, which broke a seven-day run of declines. [.N]
 "Obviously the market is oversold and there's chance of a
little rally," said Sal Masionis, stockbroker at Brant
Securities, noting that financial stocks have recently dropped
 "I think we're having a little bit of a rebound, gold
prices are still running but how high it'll go, who knows?"
 The jump in precious metal miners, up 1 percent, followed
another record high for bullion prices as investors sought
refuge from slumping stock markets, volatile currencies, a
slowing economy and fears of even looser U.S. monetary policy.
 Research In Motion RIM.TO was a bright spot and was the
fifth heaviest gainer on the index. It surged 5 percent to
C$24.42 after the BlackBerry maker took the wraps off two new
versions of its touchscreen BlackBerry Torch smartphone.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 63.71 points, or 0.5 percent, at 12,816.03.
Seven of the index's 10 main groups closed stronger.
 Pessimism about the U.S. economic outlook weighed heavily
on the market early in the day, sending the TSX to lows not
seen since last November, though it held above a significant
technical support level around 12,500.
 Data on Wednesday showed the pace of growth in the U.S.
services sector ticked down unexpectedly in July to the lowest
level since February 2010, while the number of jobs created by
the private sector also slowed. [nN1E77208M]  
 The trend to slower growth in the services sector was
prevalent around the world in July, figures showed, as
companies worried about the debt crisis in Europe and the
United States as well as slowing consumer demand. [nL6E7J30NB]
 The TSX's energy sector lost 0.7 percent, stung by an
across-the-board rise in U.S. petroleum inventories. [O/R]
 Suncor Energy SU.TO dropped 1.8 percent to C$34.65, while
Canadian Natural Resources CNQ.TO lost 0.8 percent to
($1=$0.96 Canadian)
 (Editing by Peter Galloway)