September 1, 2009 / 3:07 PM / 9 years ago

CANADA STOCKS-TSX dips on financials; materials, RIM limit loss

* TSX falls 0.14 percent to 10,852.64

* Materials outweighed by weakness in financials

* RIM leads influential risers after Credit Suisse upgrade (Adds details)

TORONTO, Sept 1 (Reuters) - Toronto’s main stock index slipped on Tuesday, as weakness led by weighty financials outweighed rising oil and gold prices and U.S. data that lent support to the view of a stabilizing economy.

Toronto’s index bounced back from initial weakness at the opening bell as the price of oil turned higher above $70 a barrel, which helped the oil and gas sector gain 0.25 percent.

Gold issues were also firmer alongside the price of gold, which boosted the materials group.

Top movers higher included Barrick Gold (ABX.TO), up 2.1 percent at C$38.58, while Goldcorp (G.TO) rose 1.2 percent to C$40.37. Suncor (SU.TO) gained 0.5 percent to C$33.65.

Also on the upside, Research in Motion RIM.TORIMM.O led all influential gainers, rising 3.3 percent to C$83.01 after Credit Suisse raised the Blackberry maker to outperform rating.

The index added gains on stronger-than-expected readings on manufacturing and housing, though the impact was short-lived. The U.S. manufacturing sector grew in August in the first month of expansion in more than a year and a half, while pending sales of previously owned U.S. homes raced to a two-year high in July. [ID:nWEN2981] [ID:nN01483755]

“Overall numbers were bullish, market reaction was bullish,” said Francis Campeau, broker at MF Global Canada, in Montreal.

At 10:45 a.m. (1445 GMT), the S&P/TSX composite index .GSPTSE was off 15.57 points, or 0.14 percent, at 10,852.64. Seven of the index’s 10 main groups were lower, including a 0.53 decline in the weighty financials.

The financials index saw strong gains last week when most of Canada’s big banks reported stronger-than-expected results.

With the traditional summer holiday period winding down this week, thin liquidity has primed the market for sharp swings.

Campeau said the market was looking forward to this Friday’s U.S. non-farm payrolls data for August, but that the reaction to the numbers may extend to the following week when many market players return from vacation.

Canadian jobs figures for August are also due Friday. (Reporting by Ka Yan Ng; editing by Jeffrey Hodgson)

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