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Canada Stocks End Flat; RIM Falls 7.5% As Lenovo Bid Talk Downplayed
By: MT Newswires
Canada's main stock market, the Toronto Stock Exchange, closed little changed Monday, matching markets in the U.S. where the Dow and S&P 500 were also near flat amid some signs a month long rally may be coming to an end there.
The TSX was twice up more than 40 points in morning trade, buoyed by the release of what was initially seen as strong U.S. durable goods data. But just as analysts began to have second thoughts on the quality of that data, out came poor U.S. pending home sales numbers. Together, the two sets of data reminded investors and traders that the U.S. economoy is still fighting to recover after the most recent recession.
Also weighing on the TSX was most active Research In Motion (RIM.TO, RIMM) which lost 7.5% ahead of the launch of its eagerly awaited Blackberry 10 on Wednesday. The company is hoping BB10 is a game changer after it lost huge share of the smart phone market to rivals Apple ( AAPL ) and Samsung. The stock was also seen under pressure on reports that Lenovo is downplaying speculation it is considering making a bid for RIM.
The sectors were evenly split between winners and losers. The Telecom and Financial sectors were the biggest gainers in percentage terms while Info Tech (which includes RIM) was the biggest loser. Energy and Metals & Mining both lost small ground.
Gold futures for February delivery settled down 0.17% at $1,652.90 an ounce, a three-week low. Driving price movement today was mixed U.S. economic data, and a climbing greenback.
Oil futures added $0.56 in today's session to close at $96.44 a barrel. Adding some upside momentum in trading today was tensions in the Middle East. However, mixed economic data from the U.S. pushed futures lower.