Canada Stocks Close Just Lower; Most Sectors Rise; Blackberry In The News Again

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After hitting record highs in recent days, the TSX was down close to 3 points on Friday, despite recent buying of mum and dad investor favourite Blackberry (BB.TO, BBRY) following the release of a positive report on the telco. Most sectors were up, but - perhaps, ironically, given Blackberry's gains - it was the Telecom sector that was under the most significant pressure.

The S&P/TSX capped Telecom index - which has enjoyed some strong buying spells of its own in recent months - was down 0.6% today, and lower by close to 1.5% for the week. On Friday, the Telecom index sliced through support levels near the 50-day moving average at 122.22, and is poised to test target support near the 200-day moving average at 118.44. This comes despite the broader index hitting all-time highs on both Wednesday and Thursday in the wake of the U.S. Federal Reserve's dovish statement.

Momentum on the sector is negative with the MACD (moving average convergence divergence) index printing at its lowest level in the past 6-month, and the negative trajectory on the MACD points to lower prices for the index.

Of commodities, gold futures rose slightly Friday, for a weekly gain of 3.3%, on some safe haven buying given geopolitical concerns about Iraq and Ukraine, and the prospect of low U.S. interest rates for a while longer.

Energy producers were up with oil prices . Copper advanced a sixth day, for its longest rally in six months.

Adding to the positive sentiment, Canada inflation Friday topped the Bank of Canada's 2% target for the first time since 2012 and retail sales also came in better than expected.

Among individual stocks, dual listed Blackberry (BBRY, BB.TO) was up another 6.81% on the TSX Friday afternoon - adding to the gains made yesterday following its Q1 result - with most of today's gains and an increase in trading volumes in the stock appearing to come following the release of bullish report by Citron Research, a known and typical short-seller that has reiterated its bullishness on the embattled telco.

According to BNN TV, Citron back in January said Blackberry was a US$15 stock, but today says it is a US$20 stock. Citron reportedly described it as the biggest teck opportunity of the year - based on the potential of Blackberry's 'Internet of Things' program. A Blackberry blog in May said this is where the customer is at the center of a connected 'Internet of Things' experience that offers tools and resources to securely connect millions of devices and distill information for real-time decisions.

It should be noted, BNN spoke to the man behind Citron and he is an owner of Blackberry stock.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

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