* S&P/TSX composite drops 32.40 points, or 0.3 pct
* RIM shares fall 5.75 pct after analyst downgrade
* Energy shares slump despite higher oil price
TORONTO, Nov 2 (Reuters) - Toronto’s main stock index finished lower on Monday, hurt by profit-taking and a selloff in shares of BlackBerry maker Research In Motion RIM.TO following an analyst downgrade.
RIM was the day’s second biggest net loser after Citi Investment Research analyst Jim Suva cut the company’s rating to “sell” from “buy,” citing competitive threats. [nN02448015] RIM shares fell C$3.67, or 5.75 percent, to end at C$60.15.
Fairfax Financial (FFH.TO) was the top net loser, shedding C$6.57, or 1.7 percent, to close at C$380.50.
Of the benchmark’s 10 main groups, five moved lower. Among them, energy fell 0.94 percent despite higher oil prices that moved past $78 a barrel. The resource-laden materials group eked out a 0.2 percent gain. Financials edged 0.45 percent higher.
“This is indicative of a market that has run ahead of itself and given the recent renewed pessimism in terms of economic prospects, investors are using this as an excuse to take money off the table,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.
“I would think profit-taking is playing a huge role.”
The S&P/TSX composite index .GSPTSE fell 32.40 points, or 0.3 percent, to close at 10,878.35.
Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri, said that profit-taking — as well as economic uncertainty — played a role in Monday’s session.
“I think investors are over-reacting to every little bit of data because nobody’s quite sure whether we’ll see the rally continue or whether this is the beginning of a bigger pullback,” she said.
$1=$1.08 Canadian Reporting by Wojtek Dabrowski; editing by Peter Galloway