August 3, 2011 / 8:49 PM / 8 years ago

CANADA STOCKS-Golds, RIM help TSX fight back from early drop

 * TSX ends up 63.71 points, or 0.5 percent, at 12,816.03
 * Hit lowest level since mid-November 2010 earlier in day
 * Seven of 10 index sectors end higher
 * Global services data disappoints  (Updates to close, adds details, quotes)
 By Claire Sibonney
 TORONTO, Aug 3 (Reuters) - Toronto’s main stock index closed higher on Wednesday, dramatically reversing a plunge to an eight-month low earlier in the day, as Research In Motion RIM.TO and precious metal miners rallied, and recently battered financial shares recovered slightly.
 Among the four most heavily weighted gainers, Royal Bank of Canada (RY.TO) rose 2 percent to C$51.30, Toronto-Dominion Bank (TD.TO) added 1.9 percent to C$76.79, Bank of Nova Scotia climbed 1.4 percent to C$53.28, and Barrick Gold Corp (ABX.TO) advanced 1.4 percent to C$47.31.
 The TSX had ended lower in five of the past seven sessions and its rebound on Wednesday followed a path that paralleled U.S. markets, which broke a seven-day run of declines. [.N]
 “Obviously the market is oversold and there’s chance of a little rally,” said Sal Masionis, stockbroker at Brant Securities, noting that financial stocks have recently dropped sharply.
 “I think we’re having a little bit of a rebound, gold prices are still running but how high it’ll go, who knows?”
 The jump in precious metal miners, up 1 percent, followed another record high for bullion prices as investors sought refuge from slumping stock markets, volatile currencies, a slowing economy and fears of even looser U.S. monetary policy. [GOL/]
 Research In Motion RIM.TO was a bright spot and was the fifth heaviest gainer on the index. It surged 5 percent to C$24.42 after the BlackBerry maker took the wraps off two new versions of its touchscreen BlackBerry Torch smartphone. [nN1E7720GP]
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 63.71 points, or 0.5 percent, at 12,816.03. Seven of the index’s 10 main groups closed stronger.
 Pessimism about the U.S. economic outlook weighed heavily on the market early in the day, sending the TSX to lows not seen since last November, though it held above a significant technical support level around 12,500.
 Data on Wednesday showed the pace of growth in the U.S. services sector ticked down unexpectedly in July to the lowest level since February 2010, while the number of jobs created by the private sector also slowed. [nN1E77208M]  
 The trend to slower growth in the services sector was prevalent around the world in July, figures showed, as companies worried about the debt crisis in Europe and the United States as well as slowing consumer demand. [nL6E7J30NB]
 The TSX’s energy sector lost 0.7 percent, stung by an across-the-board rise in U.S. petroleum inventories. [O/R]
 Suncor Energy (SU.TO) dropped 1.8 percent to C$34.65, while Canadian Natural Resources (CNQ.TO) lost 0.8 percent to C$36.83. 
($1=$0.96 Canadian)  (Editing by Peter Galloway)                                        

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