Toronto stocks set for weak open, RIM in view

Thu Jun 26, 2008 9:06am EDT
 
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*TSX looks poised for weaker open

*Research In Motion eyed after first-quarter results

TORONTO, June 26 (Reuters) - The Toronto Stock Exchange's main index looked set to open weaker on Thursday, in line with global markets, while Research In Motion RIM.TO could drag after it gave a profit outlook that fell short of expectations.

Profits from the BlackBerry maker more than doubled in the first quarter, but fell just short of the average estimate of analysts, while the company gave an outlook that also appeared to let down investors.

The results, posted after market close on Wednesday, sent RIM's shares sharply lower in after-hours trading in New York.

Energy shares, which have tumbled in the last two sessions, could see pressure if the price of crude continues to see choppy trade as it has recently.

Joe Ismail, technical analyst at Maison Placements Canada, noted that the volatility in oil prices has helped pull the heavyweight energy sector lower, as has some profit-taking among the bigger companies.

In the morning, the price of oil bounced back from losses that were seen after U.S. data showed a build up of oil stocks while demand weakened.

Meanwhile, the price of gold, another key commodity for the resource-heavy Toronto index, also pushed higher while the U.S. dollar weakened.   Continued...