TSX buoyed as energy, miners shine but BlackBerry sinks on miss

TORONTO (Reuters) - Canada’s main stock index rallied on Friday as index heavyweights like energy and mining shone, while BlackBerry Ltd shares suffered its biggest one-day drop in 2-1/2 years after disappointing first quarter sales.

File Photo: A Canadian flag waves in front of a Blackberry logo at the Blackberry campus in Waterloo, September 23, 2013. REUTERS/Mark Blinch/File Photo

BlackBerry reported an unexpected 4.7 percent drop in revenue from its software and services business, whose success is at the heart of Chief Executive John Chen’s turnaround plan for the company.

Shares tumbled 12.3 percent to C$12.86, with the overall technology group gave up 0.5 percent.

Enbridge Inc rose 1.2 percent to C$52.22, while Suncor Energy advanced 1.1 percent to C$38.52 as oil prices bounced from 10-month lows on the back of a softer U.S. dollar.

The overall energy group saw a robust 1.4 percent gain. U.S. crude prices were up 0.8 percent to $43.1 a barrel, while Brent crude added 1.0 percent to $45.66.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 99.66 points, or 0.65 percent, to finish at 15,319.56. The index gained 0.83 percent on the week.

Eight of the index’s 10 main groups finished in positive territory.

Paul Taylor, CIO of fundamental equities at BMO Asset Management Inc, said there was widespread strength across the board.

“It’s just a bit of a continued rally coming out of the ‘Oracle of Omaha’ betting with his dollars in favor of Canada housing. It’s a pretty strong endorsement,” said Taylor, referring to news on Thursday that billionaire investor Warren Buffett’s Berkshire Hathaway Inc made a commitment to provide financing for troubled alternative mortgage lender Home Capital Group.

Home Capital jumped as much as 9.2 percent on Friday before seeing some profit-taking. Shares ended down 2.1 percent at C$18.61. The overall financials group, which accounts for about a third of the index’s weight gained 0.2 percent.

The materials group, home to miners and fertilizer companies, added 1.8 percent, with Barrick Gold Corp climbing 2.7 percent to C$21.86. Teck Resources climbing 4.6 percent to C$21.97.

Gold prices touched a one-week high as the weaker greenback and global geopolitical uncertainties boosted the precious metal. Gold futures rose 0.7 percent to $1,256.2 an ounce. Copper prices advanced 1.0 percent to $5,800 a tonne.

In economic data, Canada’s annual inflation rate cooled more than expected last month, reducing the likelihood of an interest rate hike by the Bank of Canada in July.

Advancing issues outnumbered declining ones on the TSX by 200 to 44, for a 4.55-to-1 ratio on the upside.

Reporting by Solarina Ho; Editing by Sandra Maler