TSX Loses 50 Pts On Lower Oil Futures, Blackberry Concerns
Canada's main stock market, the Toronto Stock Exchange, closed down more than 50 points but more than 20 points above session lows hit with only about 30 minutes left in Thursday's session, giving some hope that Friday may be better. The TSX was down today on lower oil futures and selling in the most active stock Blackberry (BB.TO, BBRY).
The signs were there that this might be a negative day when the index finished with downward momentum on Thursday - despite taking its gains to a total of more than 200 points in three sessions.
Blackberry lost more than 7% to $13.82, but was above a day low $13.43 with more than 8.3 million shares traded on renewed concerns about its outlook.
"(The) recent optimism surrounding the ability of the new BlackBerry 10 products to get BlackBerry back to long-term profitability will ultimately prove unwarranted," Pacific Crest analyst James Faucette wrote in a research note, Reuters reported.
Elsewhere, Bloomberg reported: "The U.S. launch of the Z10 started poorly and weakened significantly as the days passed," Joseph Fersedi, an analyst at ITG Investment Research, said today in a note, citing information from independent dealers.
Bloomberg added: "Some U.S. retailers are seeing a significant increase in customers returning their Z10s because they find the interface unintuitive, Detwiler Fenton & Co. said today. "In several cases, returns are now exceeding sales, a phenomenon we have never seen before," Detwiler Fenton said."
On oil, MarketWatch said: "Oil futures finished lower Thursday, logging their first loss in four sessions." It added: "The International Energy Agency modestly cut its oil-demand forecast, a day after the Organization of the Petroleum Exporting Countries did the same. May crude fell US$1.13, or 1.2%, to settle at $93.51 a barrel on the New York Mercantile Exchange. It had climbed 2.1% over the past three sessions."
On gold, MarketWatch reported: "Gold futures rebounded on Thursday, with investors lured back to the precious metal in light of the nearly 2% drop it suffered in the previous session and amid weakness in the dollar." It said: "June gold tacked on US$6.10, or 0.4%, to settle at $1,564.90 an ounce on the Comex division of the New York Mercantile Exchange. Prices sank $27.90 on Wednesday."
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