Canada stocks Close Lower; Most Sectors Down; Blackberry Plunges After Reporting Loss and Job Cuts


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Canadian stocks closed lower on Friday, settling near the session low. Most sectors were lower with Info Tech along with Metal and Mining dragging down the broader market.

Smartphone maker Blackberry (BB.TO)was the most active share on TSX closing down 16% with 11.5 million shares changing hands. Today the company reported preliminary Q2 sales of $1.6 billion, of which approximately 50% is expected to be service revenue. During Q2, approximately 5.9 million BlackBerry smartphones were sold through to end customers.

The company expects to report a quarterly loss in the range of $250 million to $265 million, or $0.47 to $0.51 per diluted share, excluding special inventory and restructuring provisions. Capital IQ consensus is for a loss of $0.14 per share and revenue of $3.0 billion.

The company also announced its plans to cut its future smartphone portfolio from six devices to four. Meanwhile, the company's Special Committee of the board of directors continues to evaluate all strategic alternatives for the company.

Metals and Mining stocks were under pressure as gold futures staged a hefty correction today. The yellow metal shedded 2.7% of their value just a day after futures soared on news the Fed would not reign in its monetary stimulus. Despite gold's 2.7% price drop today, over the week the metal added 1.8%. It closed Friday's session at $1,332.50 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, gold added 4.7%, the most aggressive single session gains the metal has experienced since 2009.

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

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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