* TSX up 26.01 points, or 0.2 percent, at 12,942.64
* Resource shares rebound, lift index from near week low
* RIM up 5.7 pct; to challenge iPad with PlayBook pricing (Adds details, quotes)
By Jennifer Kwan
TORONTO, Nov 10 (Reuters) - Toronto’s main stock index ended higher after a volatile session on Wednesday as strength in the price of oil and gold helped to lift the market’s hefty commodity-linked issues.
Research In Motion RIM.TO also gave the market a boost, gaining 5.7 percent to C$58.61.
The BlackBerry maker, a late entrant in the booming tablet market, will take on Apple’s iPad with competitive pricing of its PlayBook. PlayBook will be priced under $500 and is expected to launch in the first quarter of next year. [ID:nN10165435]
The energy and materials sectors, both down substantially in early trade, recovered to finish with gains 0.3 percent and 0.6 percent, respectively.
U.S. crude oil futures rose to a 25-month high on government data that showed a surprise drawdown in inventories last week. Gold prices were also firmer. [O/R] [GOL/]
Elvis Picardo, an analyst and strategist at Global Securities in Vancouver, said commodity prices also got a boost as the U.S. dollar trimmed gains. [FRX/]
“Earlier in the day, the U.S. dollar was fairly strong because of concerns over European debt. These concerns have resurfaced in recent days so the U.S. dollar had strengthened on the back of that,” Picardo said.
“Those concerns at this point in time have receded a little bit. The U.S. dollar has also pared gains so commodities have recovered on the back of less strength in the U.S. dollar.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished up 26.01 points, or 0.2 percent, at 12,942.64, with seven of its 10 main groups higher.
Earlier, the TSX index was down 1 percent at 12,786.97, its weakest level since Nov. 4.
Financials fell 0.3 percent, hurt by European debt concerns. Ireland’s high debt burden led investors in Europe to seek shelter in German government bonds, which also helped push the euro lower against the U.S. dollar for a fourth straight day. [MKTS/GLOB]
“If those debt concerns come back to haunt the markets it’s going to have a broad impact on a lot of economies. Even though Canada is not directly affected by what goes on in Europe it does affect investor sentiment,” said Picardo.
Bank of Montreal (BMO.TO) fell 0.3 percent to C$59.22, while Bank of Nova Scotia (BNS.TO) sank 0.4 percent to C$54.39. Royal Bank of Canada (RY.TO), the country’s biggest lender, also got caught up in the negative mood, dropping 0.3 percent to C$54.25.
RBC’s shares could be further pressured if the bank is labeled “too big to fail”, as the Financial Times newspaper suggested on Wednesday. But analysts said it is unlikely that RBC would ultimately be at a disadvantage versus its domestic rivals. [ID:nN10186099]
Apart from European debt levels, slower than expected import data from China, concerns about the U.S. Federal Reserve’s asset purchases and the upcoming Group of 20 summit in Seoul were some of the other factors weighing on investors’ minds.
In individual company news, hardware distributor and retailer Rona Inc RON.TO said its profit rose less than expected and that it may not meet a key sales target, pulling its shares down 1.3 percent to C$13.25. [ID:nN10169263]
Quadra FNX QUX.TO fell 7.6 percent to C$14.70 after its quarterly profit fell short of expectations, partly due to higher operating costs. [ID:nSGE6A90JY]
$1=$1.00 Canadian Editing by Rob Wilson