The Toronto stock market moved sharply higher Friday, as gains in the badly beaten down gold sector were more than enough to offset a substantial decline in BlackBerry stock after the smartphone maker surprised traders with a quarterly loss and disappointing revenue.
The S&P/TSX Composite Index remained ahead 123.33 points, or 1%, to finish the day, week, second quarter and first half of 2013 at 12,129.11
The Canadian dollar dipped 0.37 at 95.07 cents U.S.
BlackBerry shares tumbled $3.97, or 26.4%, to $11.08, after saying that it lost $84 million U.S. in the first quarter when the smartphone maker launched its latest Z10 touchscreen model.
On an adjusted basis, BlackBerry had a loss of $67 million U.S. or 13 cents per share. Analysts had expected an adjusted profit of six cents per share.
Besides the unexpected loss and disappointing revenue, analysts were uphappy with a lack of specific sales figures for BlackBerry's new smartphones.
Gold prices have deteriorated steadily this year as the precious metal loses its appeal as a hedge against inflation and deteriorating currencies. Barrick Gold Corp. was ahead $1.03 to $16.60 while Goldcorp Inc. ran up $2.27, or 9.5% to $26.12.
The TSX gold sector is down almost 50% so far this year and over 17% this month alone.
The telecom sector was up with BCE Inc. up $1.16, or 2.8,% to $43.12, after the federal broadcast regulator approved bid by its Bell subsidiary to acquire Astral Media and its suite of TV specialty channels and radio stations in a deal worth $3.4 billion.
September copper was unchanged at $3.06 U.S. a pound and the base metals sector strengthened, as First Quantum Minerals gained 35 cents to $15.60.
The consumer discretion sector rose as Shaw Communications Inc. said its overall quarterly net income edged up to $250 million from $248 million a year ago, although earnings per share dropped a penny to 52 cents.
Revenue was up 4% to $1.33 billion. Shaw also said it has been able to minimize flood-related disruptions to its infrastructure in Alberta and is on track to generate more free cash than previously expected in the current financial year. Its shares jumped $1.30, or 5.4%, to $25.24.
The energy sector was up with Cenovus Energy climbing 19 cents to $30.
On the economic slate, Statistics Canada reported this morning that real gross domestic product grew 0.1% in April, a fourth consecutive monthly increase. Service industries led the gain in April.
Moreover, its industrial product price index was unchanged in May from April, and the agency’s raw materials price index rose 0.2% in May, mostly as a result of higher prices for animals and animal products.
ON BAYSTREET
The TSX Venture Exchange hiked 21.16 points to 881.40
All but one of the 14 Toronto subgroups were positive Friday, led by an 8.1% spike in gold stock prices, 4.8% for materials, and 2.5% for metals and mining issues.
The lone loser was in information technology, taking a pasting of 7.7%.
ON WALLSTREET
Stocks ended a rough June with somewhat mixed results Friday.
The Dow Jones Industrials retreated 114.89 points to close at 14,909.60
The S&P 500 index gave back 6.92 points to 1,606.28. The tech-rich NASDAQ Composite eked its way into positive territory, gaining 1.38 points to 3,403.25
All three indexes are headed for a monthly decline of 1%, making June the first losing month this year. But despite recent gyrations, stocks are up 12% to 15% so far this year.
Embattled mobile company BlackBerry reported first-quarter results Friday that fell short of analysts' forecasts. Shares tumbled 25%.
Nike reported better-than-expected earnings, but analysts remain worried about Nike's ability to cut costs.
Shares of Accenture moved lower after the consulting firm slashed expectations for its year-end results.
Shares of Pfizer edged higher after the drug maker announced late Thursday that it would increase its share buyback program by $10 billion U.S.
The restaurant chain Noodles & Co's stock more than doubled from its $18 IPO price Friday.
Fed officials have been in damage control mode lately about the end of so-called quantitative easing.
But in trying to allay investor fears, Fed Governor Jeremy Stein might have inadvertently stoked them. In a speech Friday morning, he said that the Fed could consider tapering its bond buying in September.
Fed Chairman Ben Bernanke kicked off tumult in the stock, bond and gold markets last week. He said the central bank could wind down its stimulus program later this year, if the economy continues to improve.
Prices for the 10-year U.S. Treasury faded a bit, increasing yields to 2.48% from Thursday’s 2.47%. Treasury prices and yields move in opposite directions.
Oil prices dipped 55 cents to $96.50 U.S. a barrel.
Gold prices regained $17.10 to $1,228.70 U.S. an ounce.
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