CANADA STOCKS-Gold, Potash take TSX higher; BlackBerry pounded

Mon Nov 4, 2013 5:13pm EST
 
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* TSX rises 24.32 points, or 0.18 percent, to 13,361.78
    * Six of 10 main index sectors advance
    * Potash has market's biggest positive influence
    * BlackBerry drops 16.6 percent

    By John Tilak
    TORONTO, Nov 4 (Reuters) - Canada's main stock index rose on
Monday as a jump in the shares of gold miners and in Potash Corp
 provided support, offsetting weakness in BlackBerry Ltd
 after the smartphone maker called off a sale of the
company. 
    Investors were also encouraged by data showing global
manufacturing increased last month at its fastest pace in more
than two years. Signs of strength in the global
economy benefit the export-focused Canadian market, which has
gained close to 5 percent in the last month.
    But BlackBerry shares plunged 16.6 percent after the
smartphone maker said it was abandoning a plan to sell itself,
and instead will replace its chief executive and raise about $1
billion from institutional investors, including its largest
shareholder, Fairfax Financial Holdings Ltd.
 
    BlackBerry stock weighed the most on the index, dropping to
C$6.75 by the close. Fairfax Financial shares slipped 2.5
percent to C$423.98.
    "They've bought themselves time to try to stabilize the
situation," said Michael Sprung, president of Sprung Investment
Management. "This probably gives them a few years at least to
work something out, or possibly sell the company, either in
whole or in part."
    Investors also tried to see which way the U.S. Federal
Reserve would go with its monetary stimulus program.
    Earlier in the day, St. Louis Federal Reserve President
James Bullard said that because of low inflation the Fed should
not rush a decision to scale back its asset purchase program.
 
    "I don't think we'll see any tightening until they're fairly
confident that the momentum in the recovery can carry on without
the liquidity provided by the Federal purchases," Sprung said.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 24.32 points, or 0.18 percent, at 13,361.78.
Six of the 10 main sectors on the index were higher. 
    Gold-mining stocks jumped more than 3 percent. Goldcorp Inc
 rose 3 percent to C$26.09, and Barrick Gold Corp 
added 1.9 percent to C$19.08.
    Potash added 3.3 percent to C$33.88, having the biggest
positive influence on the market. Those moves also helped lift
the index's broader materials sector up 2.3 percent.
    Financial shares lost 0.2 percent, with Toronto-Dominion
Bank giving back 0.2 percent to C$95.67 and Bank of Nova
Scotia falling 0.5 percent to C$63.38.