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CANADA STOCKS-TSX rallies as energy and materials lead, BlackBerry sinks

Published 2017-06-23, 10:44 a/m
Updated 2017-06-23, 10:50 a/m
© Reuters.  CANADA STOCKS-TSX rallies as energy and materials lead, BlackBerry sinks

* TSX up 84.05 points, or 0.55 percent, to 15,303.95

* Eight of the TSX's 10 main groups rise

* Energy stocks gain 1.3 percent, materials up 1.1 percent

* BlackBerry stock falls 11.8 percent to C$12.93

TORONTO, June 23 (Reuters) - Canada's main stock index rallied on Friday, bolstered by index heavyweights like energy and mining stocks, but BlackBerry Ltd BB.TO shares suffered sharp losses after first quarter sales missed expectations.

BlackBerry reported an unexpected 4.7 percent drop in revenue from its software and services business, whose success is at the heart of Chief Executive John Chen's turnaround plan for the company. Shares tumbled 11.8 percent to C$12.93, on track for its biggest one-day decline in about 2-1/2 years. overall tech group was down 0.5 percent.

Suncor Energy Inc SU.TO advanced 1.4 percent to C$38.63, while Canadian Natural Resources Ltd CNQ.TO rose 1.1 percent to C$38.07 as oil prices touched session highs on the back of a softer U.S. dollar.

The overall energy group saw a robust 1.3 percent gain. U.S. crude CLc1 prices were up 0.5 percent to $42.94 a barrel, while Brent crude LCOc1 added 0.5 percent to $45.46. O/R

At 10:25 a.m. ET (1425 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rose 84.05 points, or 0.55 percent, to 15,303.95.

Of the index's 10 main groups, eight were in positive territory. The consumer staples group, home to grocers, was down 0.3 percent.

The materials group, home to miners and fertilizer companies, added 1.1 percent, with Barrick Gold Corp ABX.TO climbing 2.4 percent to C$21.80. Bullion prices hit a one-week high, as the weaker greenback and global geopolitical uncertainties boosted the precious metal. Gold futures GCc1 rose 0.7 percent to $1,256.1 an ounce. GOL/

The financials group, which accounts for about a third of the index's weight, gained 0.3 percent, with bank stocks seeing modest advances.

Home Capital Group Inc HCG.TO extended its previous session's gains, climbing 3.4 percent to C$19.64, following news that Warren Buffett's Berkshire Hathaway (NYSE:BRKa) Inc BRKa.N made a commitment to provide financing for the alternative lender. National Railway Co CNR.TO was one of the most influential movers on the index, climbing 1.3 percent to C$107.03, while the overall industrials group rose 0.9 percent.

In economic data, Canada's annual inflation rate cooled more than expected last month, declining to 1.3 percent in May from April's 1.6 percent, and reducing the likelihood of an interest rate hike by the Bank of Canada in July. Food prices fell on an annual basis for the eight month in a row as consumers paid less for meat and fresh fruit. ECONCA issues outnumbered declining ones on the TSX by 187 to 50, for a 3.74-to-1 ratio on the upside.

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