CANADA STOCKS-TSX stumbles on RIM setback, Fed decision

Wed Jan 30, 2013 5:19pm EST

* TSX falls 36.12 points, or 0.28 percent, to 12,794.44
    * Nine of 10 main sectors decline
    * RIM sheds 12 percent as launch date disappoints

    By John Tilak
    TORONTO, Jan 30 (Reuters) - Canada's main stock index closed
lower on Wednesday, led by a 12 percent fall in Research In
Motion Ltd after it released its BlackBerry 10 devices
and by broader market weakness after the U.S. Fed decision to
leave its stimulus program intact.
    RIM played the biggest role of any stock in leading the
market lower. 
    The company unveiled the long-delayed line of smartphones it
hopes will put it on the comeback trail on Wednesday but it
disappointed investors by saying U.S. sales of its all-new
BlackBerry 10 will start in March instead of earlier.
 
    "RIM has been the center of attraction. The stock has had
such a big run-up on anticipation, nearly tripling from its
lows, that some profit taking was to be expected," said Elvis
Picardo, strategist and vice president of research at Global
Securities in Vancouver.
    But many investors agree that the launch has given the
company a new lease of life and may help it survive, he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 36.12 points, or 0.28 percent, at 12,794.44.
The index earlier in the session hit 12,895.28, its highest
since Aug. 2, 2011.
    Canadian stocks also slipped following news the U.S. Federal
Reserve left in place its monthly $85 billion bond-buying
stimulus plan, saying economic growth had stalled but indicating
the pullback was likely temporary.
    The announcement followed data that showed the U.S. economy
had unexpectedly contracted in the fourth quarter, suffering its
first decline since the recession ended. 
    Nine of the 10 main sectors on the Canadian stock index
declined.
    The energy sector slipped 0.2 percent despite a rise in oil
prices. TransCanada Corp lost 1.2 percent to C$48.17.
    Materials stocks also weakened as Barrick Gold Corp 
slipped 1.3 percent to C$32.47. This was partly offset by a 16.5
percent rise in CCL Industries Inc after its plans to
buy Avery Dennison Corp's consumer and office supplies
unit.
    Declines in financials, down 0.2 percent, and industrials,
which slipped 0.8 percent, also weighed on the market.
    The information technology sector fell 1.4 percent on the
RIM stumble.
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