September 26, 2008 / 2:15 PM / 9 years ago

UPDATE 1-Toronto stocks tumble on US woes, RIM

*Research In Motion falls 25 percent after forecast

*Financials sink on U.S. bailout delay, WaMu failure

*Energy stocks fall as oil slides on rescue plan doubts

(Adds details)

TORONTO, Sept 26 (Reuters) - The Toronto Stock Exchange’s main index opened sharply lower on Friday after sentiment soured further on delays in getting a deal on a U.S. financial bailout plan and as technology bellwether Research In Motion Ltd RIM.TO issued a softer forecast.

At around 9:45 a.m. (1345 GMT), the technology sector was down 8 percent with Research In Motion RIM.TORIMM.O dropping 25 percent to C$75.85.

After the market close on Thursday, RIM warned profit in the current quarter would come in lower than analysts had foreseen due to higher costs related to its newest BlackBerry smartphones.

A cloud of uncertainty swirled over the U.S. financial bailout plan as pressure mounted for a deal to be made after talks broke down in acrimony.[ID:nLQ606777] For links to more stories, see [ID:nN22402709]

Adding to the mix, U.S. authorities shut bank Washington Mutual Inc (WM.N) and sold its assets to JPMorgan Chase & Co (JPM.N), roiling global markets.

New U.S. economic data showed growth was not as strong as previously thought in the second quarter as consumer spending rose less than foreseen, and businesses cut back on investments. [ID:nN26283994]

Shortly after the open, the S&P/TSX composite index .GSPTSE was down 314.00 points, or 2.5 percent, at 12,232.51, with all of its 10 main groups lower.

The heavily-weighted financial services sector slumped 2.1 percent with Sun Life Financial Inc (SLF.TO) down 4.4 percent at C$37.74 after the insurer said it expects to record a charge related to its exposure to Washington Mutual in the third quarter. [ID:nN26276538]

The heavily-weighted materials and energy groups, which combined account for about half of the index’s weigh, slumped 2.6 percent and 1.2 percent, respectively, as commodity prices dropped. ($1=$1.03 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below