Toronto stocks fall on banks and RIM, golds rise

Thu Jun 26, 2008 5:31pm EDT
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By Cameron French

TORONTO (Reuters) - The Toronto Stock Exchange's main index dropped more than 1 percent on Thursday, led down by a retreat in the heavily-weighted financial sector and a 13 percent slide by tech giant Research In Motion RIM.TO.

The S&P/TSX composite index .GSPTSE fell 148.99 points, or 1.03 percent, to close at 14,292.14.

All of the major banks fell, caught up in concerns over the outlook for U.S. financials after Goldman Sachs said there could be deep second-quarter losses and writedowns at Citigroup (C.N: Quote) and Merrill Lynch & Co MER.N.

"There's a continued concern that many of the banks still have some writeoffs to be taken care of," said Brian Pow, vice president of research and equity analyst at Acumen Capital Partners, in Calgary, Alberta.

"I think people felt the risk premium on them probably a little bit higher than what was deserved on the price."

Canadian Imperial Bank of Commerce (CM.TO: Quote) fell C$2.53, or 4.1 percent, to C$58.58, while Bank of Montreal (BMO.TO: Quote) eased C$1.13, or 2.6 percent, to C$42.57.

All told, the financials subgroup dropped 2.49 percent as seven of the 10 TSX sectors took a loss on the day.

The tech sector dropped 4.82 percent, weighed down by BlackBerry-maker Research In Motion, which disappointed the market with the profit outlook it released late on Wednesday.   Continued...