June 25, 2010 / 6:17 PM / in 7 years

CANADA STOCKS-TSX climbs on strong resources; RIM drags

*TSX up 78.97 points at 11,749.15

*Eight of its 10 main groups higher

*RIM down nearly 10 pct after quarterly results (Updates to afternoon, adds quote)

By Jennifer Kwan

TORONTO, June 25 (Reuters) - Toronto’s main stock index climbed on Friday afternoon as strong oil and gold prices pushed up its resource sectors, overcoming weakness in the shares of BlackBerry maker Research In Motion RIM.TO.

Oil prices surged toward $79 a barrel on concerns that a tropical disturbance in the Caribbean Sea may develop into a storm and threaten Gulf of Mexico production. [O/R]

At the same time, bullion prices rose on financial market uncertainty as investors awaited the outcome of the weekend summit of Group of 20 advanced and emerging economies in Toronto. [GOL/]

Oil company Suncor Energy Inc (SU.TO) was up 0.5 percent at C$48.32. Among gold producers, Barrick Gold (ABX.TO) was up 3.8 percent at C$48.32, and Goldcorp (G.TO) rose 2.7 percent to C$47.34.

“There is a lot of uncertainty about the long term outlook for currencies,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver, noting recent focus on euro zone debt concerns. “Investors are gravitating to gold as a safe haven from the turmoil in some of the major currencies.”

At 1:54 p.m. (1754 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 78.97 points, or 0.68 percent, at 11,749.15, with eight of its 10 main groups higher.

Resource strength offset weakness in Research In Motion, which skidded after its quarterly results reignited worries about declining market share in North America.

RIM reported subscriber and shipment figures on Thursday that disappointed investors and rekindled fears that the BlackBerry maker is losing market share to Apple Inc (AAPL.O) and other rivals. [ID:nN21262767]

RIM shares tumbled 9.9 percent to C$55.03 on Friday, pulling the TSX index’s information technology sector 1.2 percent lower.

“The big issue right now is that they’re not gaining market share. They’re actually losing market share in the smartphone market,” said Julie Brough, vice president at Morgan Meighen & Associates.

Downtown Toronto, home to the Toronto Stock Exchange and Canada’s financial center, was largely shuttered on Friday due to tight security measures in preparation for a summit of the Group of 20 rich and developing nations on the weekend. [ID:nN18322198]

$1=$1.04 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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