CANADA STOCKS-TSX's late-day surge overshadows RIM tumble

Fri Apr 29, 2011 5:21pm EDT
 
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   * TSX up 0.36 pct at 13,944.79, down 0.2 pct on week
 * Nine of 10 main sectors advance
 * RIM falls more than 14 percent, biggest decliner
 * Investors mostly sidelined ahead of Monday's election
 (Adds details)
 By Ka Yan Ng
 TORONTO, April 29 (Reuters) - Toronto's main stock index
made a late-day dash higher on Friday as rallying resource
issues overcame a plunge by BlackBerry maker Research In Motion
RIM.TO.
 The energy and materials groups, which together make up
about 50 percent of the index's weight, were up 1.12 percent
and 0.67 percent respectively.
 Suncor Energy SU.TO, ahead 1.89 percent at C$43.61, and
Canadian Natural Resources CNQ.TO, up 2.44 percent at
C$44.51, were the biggest heavyweight advancers on Friday.
Potash Corp POT.TO rose 1.44 percent to C$53.45.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished 50.39 points, or 0.36 percent, higher at
13,944.79. Nine of its 10 sectors advanced.
 The index fell 0.2 percent on the week.
 "We seem have some difficulty breaking above 14,000," said
Elvis Picardo, an analyst and strategist at Global Securities
in Vancouver.
 He said gold issues have not been fully participating in
the surge in the price of gold, which rose nearly 2 percent to
near $1,570 on Friday, hitting a record high for a third
consecutive day.
 Overall, Toronto's main index has lagged its U.S.
counterparts recently, analysts said, even with rising
commodity prices.
 "After outperforming for an impressive seven straight
years, Canadian stocks have suddenly lost some luster versus
their U.S. counterparts," said Robert Kavcic, economist at BMO
Capital Markets.
 "One reason for the somewhat sluggish performance in Canada
has been what's happening at the sector level."
 He noted that the index's materials group, home to the gold
miners, have been a relative drag, while the technology sector
-- after accounting for index weights -- has been "the biggest
driver of underperformance in Canada."
 The information technology group was the TSX's lone
decliner on Friday, down 3.09 percent, as RIM fell more than 14
percent to C$46.09 after it issued a profit warning late on
Thursday.
 RIM was the day's biggest decliner, accounting for more
than 10 percent more drag on the index than the second worst
performer, Silver Wheaton SLW.TO.
 "If you were to put RIM aside, you're seeing a better bid
to the energy complex, you're still seeing better leadership
within the metals and golds complex, you're still seeing some
rotation out of the financials that is moving into energy
again," said Sid Mokhtari, market technician and director of
institutional equity research at CIBC World Markets.
 "When we put it all together, we see that the positive
cycle of the commodities -- although it appears somewhat tired
in the near term -- structurally remains in good standing."
 Until the rally in the final moments of the session, the
main index had been bouncing around the unchanged mark. Picardo
said the flat performance can be attributed partly to market
caution as the left-leaning New Democratic Party has closed in
on the incumbent Conservatives in the polls ahead of Monday's
general election. [ID:nN29210714]
 The gap between the Conservatives and the NDP -- a distant
third nationally at the start of the campaign -- has narrowed
to just five points. [ID:nN29120747]
 "It could be that we're seeing investors on the sidelines
because of the election next week. There seems to be some
degree of uncertainty about which way it's going to go,"
Picardo said.
 "And I would say that's been a pattern ever since the NDP
surged in the polls."
 ($1=$0.95 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)