CANADA STOCKS-RIM's plunge pulls TSX lower

Fri Sep 16, 2011 10:59am EDT
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 *TSX down 11.14 points at 12,413.70
 *RIM sinks 20 percent after weak earnings
 *Five of 10 index sectors stronger as banks, golds rise
 By Claire Sibonney
 TORONTO, Sept 16 (Reuters) - A plunge in shares of Research
In Motion RIM.TO following disappointing earnings kept
Toronto's main stock market in negative territory on Friday
morning, overwhelming optimism that policymakers were coming to
grips with the euro zone debt crisis.
 RIM was the single biggest drag on the market, sinking 20
percent to C$23.41 after reporting a steep drop in
second-quarter profit on Thursday on limp sales of its
smartphones and tablets. [ID:nS1E78E1MR]
 "Investors are telling us that a change needs to happen (at
RIM) very quickly. The market is saying that the management are
not the right guys to lead the company going forward," said
Barry Schwartz, portfolio manager at Baskin Financial
 "There are things to like about RIM here, but this company
has been now taken over by the short-sellers and it's no longer
being valued on its prospects."
 At 10:34 a.m. (1434 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 11.14 points, or
0.09 percent, at 12,413.70, after three days of gains. Five of
its 10 sectors were stronger, including financials and
materials, both up 0.4 percent.
 Among the lead gainers, Royal Bank of Canada RY.TO rose
1.1 percent to C$47.99, and Barrick Gold ABX.TO climbed 0.6
percent to C$52.38.
 Investors were still cautious ahead of a press conference
from an EU meeting in Poland, where U.S. Treasury Secretary
Timothy Geithner said policymakers should end loose talk about
a euro zone break-up.  [ID:nL3E7KG0KC]
 "It's time to get serious," Schwartz said. "People are
talking about the Lehman Brothers Part 2 and when you hear
those words the whole world stands up and listens ... we're all
tied together."
  ($1=$0.98 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)