June 26, 2008 / 8:32 PM / 11 years ago

UPDATE 3-Toronto stocks hit by banks and RIM selloff

(Updates closing numbers, adds details)

* TSX index falls more than 1 percent

* Research In Motion takes steep fall on quarterly results

* Financials hit by worries of U.S. writedowns

* Gold miners helped by bullion prices

TORONTO, June 26 (Reuters) - The Toronto Stock Exchange’s main index dropped more than 1 percent on Thursday, led by the a retreat in the heavily-weighted financial sector and 13 percent slide by tech giant Research In Motion RIM.TO.

The S&P/TSX composite index .GSPTSE fell 148.99 points, or 1.03 percent, to close at 14,292.14.

All of the major banks fell, caught up in concerns over the outlook for U.S. financials after Goldman Sachs said there could be deep second-quarter losses and writedowns at Citigroup (C.N) and Merrill Lynch & Co MER.N.

“There’s a continued concern that many of the banks still have some writeoffs to be taken care of,” said Brian Pow, vice president of research and equity analyst at Acumen Capital Partners, in Calgary, Alberta.

“I think people felt the risk premium on them probably a little bit higher than what was deserved on the price.”

Canadian Imperial Bank of Commerce (CM.TO) fell C$2.53, or 4.1 percent, to C$58.58, while Bank of Montreal (BMO.TO) eased C$1.13, or 2.6 percent, to C$42.57.

All told, the financials subgroup dropped 2.49 percent, as seven of the 10 TSX sectors took a loss on the day.

The tech sector dropped 4.82 percent, weighed down by BlackBerry-maker Research In Motion, which disappointed the market with the profit outlook it released late on Wednesday.

The stock, the largest on the TSX, fell a steep C$18.86, or 13.1 percent, to C$125.14.

The only TSX sector to make notable gains was materials, which rose 2.61 percent as a sharp rise in gold prices boosted gold miners. ($1=$1.01 Canadian) (Reporting by Cameron French; Editing by Peter Galloway)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below