TSX shrugs off election, but RIM dents gains
By Claire Sibonney
TORONTO (Reuters) - Toronto's main stock index shrugged off the fall of Canada's Conservative government on Friday and nudged higher as stronger resource shares offset a plunge by Research In Motion RIM.TO.
RIM tumbled more than 10 percent to C$55.78 after the BlackBerry maker warned that heavy spending on its PlayBook tablet launch would drag on earnings.
"It shouldn't come as a surprise to anybody. One only has to look at how much competition is now out there and how popular the non-RIM products are," said Barry Schwartz, portfolio manager at Baskin Financial Services.
"The (Apple (AAPL.O: Quote)) iPhone and the (Google GOOG.O) Android are just phenomenally popular and it doesn't take a lot of research to figure out that market share for RIM is going to be forever impacted, unless they come out with fantastic new products to catch up."
Schwartz said the political drama in Ottawa on Friday had no impact on money managers' near-term views.
"There is no impact whatsoever on anybody's thinking here. It's a complete sideshow and waste of time."
Opposition parties brought down the minority Conservative government in a nonconfidence vote, setting the scene for an early May election that polls indicate the Conservatives will likely win.
"The market is really anticipating the status quo," said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver. Continued...