UPDATE 2-Toronto stocks plunge as RIM, U.S. woes bite hard

Fri Sep 26, 2008 11:30am EDT
 
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*Research In Motion falls 25 percent on softer forecast

*Financials sink on stalled U.S. bailout, 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 tumbled on Friday morning 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.

Shortly after 11 a.m. (1500 GMT), the technology sector was down 6.8 percent with Research In Motion RIM.TORIMM.O dropping 24.6 percent to C$76.20, accounting for more than 100 points of the index's 400-point drop.

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. [ID:nN25530058]

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.   Continued...