September 16, 2011 / 3:03 PM / 6 years ago

CANADA STOCKS-RIM's plunge pulls TSX lower

3 Min Read

 *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 Services.
 "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)                 

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