CANADA STOCKS-Soaring golds buoy TSX; but BlackBerry gets pummeled

Fri Jun 28, 2013 5:18pm EDT

* TSX rises 123.33 points, or 1.03 percent, to 12,129.11
    * Nine of 10 main index sectors decline
    * Index slips nearly 5 percent in second quarter
    * BlackBerry tumbles 26 percent after results
    * Gold miners up 8.4 percent, biggest jump in 3-1/2 years

    By John Tilak
    TORONTO, June 28 (Reuters) - Canada's main stock index hit a
one-week high on Friday as gold-mining shares shot through the
roof after bullion rallied, overshadowing a plunge in smartphone
maker BlackBerry.
    The gold sector soared more than 8 percent to record its
biggest single-day percentage jump in more than 3-1/2 years.
    Despite its gain on the last trading day of the second
quarter, the index posted its biggest quarterly decline in a
year, falling 4.9 percent.
    BlackBerry lost more than 26 percent of its market value
after its quarterly report offered few signs of a long-promised
turnaround. The company posted an unexpected operating loss and
gave few details on sales of its make-or-break new line of
smartphones, and did not signal a return to profit in the
current quarter. 
    Giving the market support was data that showed Japan's
consumer prices stopped falling in May, while labor demand
reached its strongest level in five years. 
    While global markets were hit hard by Fed Chairman Ben
Bernanke's hints last week of a tightening monetary policy,
investors took heart from another Fed official's comments on
Thursday that Fed asset purchases will be more aggressive than
outlined last week if U.S. economic growth falters.
    The market is starting to realize that the Fed is not likely
to put a sharp end to its massive bond buying program, said
Sadiq Adatia, chief investment officer at Sun Life Global
Investments.
     "Bernanke was talking about taking the foot off the pedal,
rather than putting the brakes on," he added. "It's loosening
the amount that is going in, rather than taking it all out."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 123.33 points, or 1.03 percent, at
12,129.11. The benchmark Canadian index is down 2.4 percent this
year.
    "We'll probably see a sideways-moving market in Canada,
probably lower, over the summer," said Adatia, who expects the 
weakness to result mainly from a slowdown in the country's
housing industry and softer commodity prices.
    Nine of the 10 main sectors on the index were higher on
Friday.
    The materials sector, which includes mining stocks, added
4.7 percent. Gold mining shares jumped 8.4 percent as the price
of bullion climbed. Goldcorp Inc gained 9.5
percent to C$26.12, and Barrick Gold Corp rose 6.6
percent to C$16.60.
    Financials, the index's most heavily weighted sector, were
up 0.4 percent. Toronto-Dominion Bank rose 0.7 percent
to C$84.47.
    BCE Inc shares climbed 2.8 percent to C$43.12 after
Canada's broadcast regulator approved a C$3 billion ($2.86
billion) bid by the telecoms company to take over Astral Media
Inc. 
    BlackBerry's drop to C$11.08 caused a 7.7 percent fall in
the information technology sector, the only group to decline.
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