UPDATE 2-Toronto stocks up sharply as oils climb, RIM drops

Mon Oct 20, 2008 11:55am EDT
 
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* Energy group up 5.65 percent, leads index higher

* Nine of 10 groups rise, building on last's week's gains

* RIM off nearly 10 percent (Adds details)

TORONTO, Oct 20 (Reuters) - The Toronto Stock Exchange's main index rose 2.6 percent in a broad rally on Monday morning as higher commodity prices pulled up the energy and materials sectors.

Oil was up at around $72 a barrel, but off session highs, supported by expectations that OPEC may cut output this week to boost prices, [ID:nSYD4652]. Toronto's oil and gas sector was up 5.65 percent.

Information technology was the only sector that was down, pulled lower by Research In Motion RIM.TO. The BlackBerry maker was off 9.6 percent at C$63.53, mirroring a similar decline in its U.S.-listed stock RIMM.O on fears that economic and competition pressures may cut into the company's sales estimates.

Pacific Crest said it RIM's November sales for handsets were at risk of being revised.

In the oil and gas group, Canadian Natural Resources (CNQ.TO: Quote) gained 5.5 percent to C$53.27, while Imperial Oil (IMO.TO: Quote) rose 8.9 percent to C$39.86.

Energy shares rose as signs emerged that Canada's energy companies may be hunkering down in the midst of the credit crunch. The Globe and Mail newspaper reported on Monday that Nexen NXY.TO and Opti OPC.TO plan to delay expansion of their Long Lake oil sands project. [ID:nN20507269]   Continued...