February 11, 2009 / 4:06 PM / 10 years ago

CANADA STOCKS-Resource issues lift TSX, RIM weighs

* TSX higher after 2.5 percent drop on Tuesday

* RIM shares tumble on profit outlook (Adds details, quote)

TORONTO, Feb 11 (Reuters) - Toronto’s main stock index was slightly higher on Wednesday morning, following a 2.5 percent drop in the previous session, led higher by mining companies, which climbed on strength in the price of gold, and some investor bargain-hunting.

The resource laden materials group, home to resource and fertilizer companies, climbed 4.7 percent. The energy sector, up 0.52 percent, also provided support even as the price of oil CLc1 was slightly weaker. [ID:nSYD426357]

Heavily weighted stocks on the upside included Barrick Gold (ABX.TO), ahead 5.8 percent at C$48.86, and Goldcorp (G.TO), which climbed 7 percent to C$39.43.

The rise comes a day after the resource-laden TSX fell sharply, as North American equity markets tumbled on skepticism over Washington’s bank rescue plan, unveiled on Tuesday.

Investors were likely searching for bargains given Tuesday’s drop, analysts said.

If Toronto can manage to hold on to gains throughout the day it could be a sign resources are trying to push higher, said Michael Smedley, chief portfolio manager at Morgan Meighen & Associates.

“It is showing that the resources sector is at least somewhat impervious to the influence of the financial stress going on,” he said.

At 10:27 a.m. (1527 GMT), the S&P/TSX composite index .GSPTSE was up 29.44 points, 0.33 percent, at 8,847.33, with seven of its 10 main groups higher. Earlier, it jumped 1 percent.

The information technology group kept the gains in check, falling 4.5 percent. The group tumbled lower after Research in Motion RIM.TO, the top net loser on the market, said fourth-quarter earnings would be at the low end of its previous forecast range. [ID:nN11352604] RIM shares fell 17.8 percent to C$58.27.

“The market is extremely sensitive to cautious statements from companies,” said Smedley.

Among individual names, fertilizer maker and agricultural products retailer Agrium Inc AGU.TO rose 4.8 percent to C$48.20.

Shares of BCE Inc (BCE.TO), Canada’s biggest telecom company, climbed 2.1 percent to C$25.65. Earlier, it reported a fourth-quarter loss reflecting restructuring charges and writedowns on investments. However, it said it expects earnings to grow more than 5 percent in 2009. [ID:nN11358252]

$1=$1.25 Canadian Reporting by Jennifer Kwan; editing by Rob Wilson

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