June 29, 2012 / 8:40 PM / 7 years ago

CANADA STOCKS-TSX rallies on EU summit surprise; RIM drags

* TSX up 171.86 points, or 1.5 percent, at 11,596.56
    * Energy stocks lead broad rally
    * RIM falls after earnings; new phones delayed

    By Allison Martell
    TORONTO, June 29 (Reuters) - Canada's main stock index rose
in a broad rally on Friday after euro zone leaders agreed on
measures to cut soaring borrowing costs in Italy and Spain and
recapitalize banks, offsetting a sharp drop in Research in
Motion Ltd.
    Oil and other commodities rose on news of the deal, which
was seen as a sign the euro zone is adopting a more flexible
approach to solving a debt crisis that has hampered global
    "Expectations going into the summit were very low," said
Elvis Picardo, strategist at Global Securities in Vancouver.   
"The feeling is that perhaps the EU (European Union) is taking
the first concrete steps to actually come up with a solution to
this whole mess."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 171.86 points, or 1.5 percent, at 11,596.56.
The index closed up 1.4 percent for the week, in large part
because of Friday's move.
    The energy group played the biggest role in pulling the
index higher, rising 2.8 percent as U.S. crude rose more than 9
percent, the biggest single-day percentage rise since March 12,
    "Positive news coming out of the European summit very late
last night is pushing up ... global commodity prices, and also
riskier assets such as equities," said Patricia Mohr, vice
president, economics and commodity market specialist at
Scotiabank. "I don't think the financial markets were expecting
very much progress."
    Gold and copper rallied, and commodities were broadly
higher. The Thomson Reuters-Jefferies CRB Index was up
4.6 percent.  
    The heavyweight materials group, which includes gold and
base metal miners, rose 2.2 percent, and financial issues rose
1.4 percent. 
    Suncor Energy rose 4.0 percent to C$29.44, and Royal
Bank of Canada was 1.9 percent higher. The stocks played
the biggest role of any two companies in boosting the TSX.
    The only major TSX sector that did not rise was information
technology, which was pulled lower by BlackBerry maker Research
In Motion.
    The company's stock closed down 20.3 percent at C$7.54 after
it reported a steeper-than-expected quarterly operating loss and
deep job cuts, and delayed the make-or-break launch of its
next-generation phones until next year. 
    RIM did more than any other stock to keep the index from
rising further. It was also the second most heavily traded stock
on the exchange.
    In other company news, Canadian Pacific Railway Ltd 
named Hunter Harrison its chief executive, months after a
boardroom shakeup triggered by William Ackman's Pershing Square
Capital Management felled former CEO Fred Green. Its stock rose
1.6 percent to C$74.72.
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