TSX closes positive despite RIM losses

The BlackBerry maker’s shares tumbled $1.83 or 11.58% to $13.97 after it disappointed investors with much lower profits and an announced delay until late next year for delivery of its new generation of BlackBerrys to consumers. Co-CEO and co-chairman Mike Lazaridis said Thursday that the delay is caused by the chipset that will power the new BlackBerry 10.

RIM reported a third-quarter net profit of only US$256 million, compared with $911 million for the same period last year.

The S&P/TSX composite index gained 130.96 points to 11,635.38 while the TSX Venture Exchange gained 21.18 points to 1,426.11.

The Canadian dollar lost 0.12 of a cent to 96.43 cents US and New York markets turned lower on concerns about worsening economic conditions in Europe.

The Dow Jones industrial index dipped 2.57 points to 11,866.24. The Nasdaq composite index gained 14.32 points to 2,555.33 and the S&P 500 index was ahead 3.9 points to 1,219.65.

Fitch ratings agency said it was keeping France’s credit grade at Triple-A, but revised its outlook on the key eurozone country to negative from stable.

France’s credit grade is supported by the country’s wealthy and diversified economy and noted the government has adopted several measures to strengthen its finances. Fitch said, however, that France’s debt is expected to rise to a peak of 92% of GDP in 2014.

Fitch also announced it was considering further cuts to the credit scores of six eurozone nations — heavyweights Italy and Spain, as well as Belgium, Cyprus, Ireland and Slovenia. It said all six could face downgrades of one or two notches.

Despite the positive showing Friday, it was another negative week for the TSX, which fell 399 points or 3.31% as worries about the European debt crisis vied for attention with improving economic reports.

“The debate going on right now is Europe and the risks of the unknown with the banking crisis versus the economic data, especially out of the U.S. which has been better than expected,” said Mark Bayko, portfolio adviser, U.S. and International Equities, RBC Dominion Securities

American markets had been higher in the morning against a backdrop of positive U.S. data, including a report Thursday showing the number of people applying for unemployment benefits dropped sharply last week to the fewest since May 2008.

Traders had also been encouraged by two strong regional manufacturing reports.

There was relief Friday after the Italian government won a critical confidence vote in the lower house of parliament on a C30-billion austerity package.

The plan aims at persuading bond markets that the country can emerge from the widening European debt crisis. The country now sits on C1.9 trillion of debt that could spark a global economic recession if a default occurs.

TSX mining stocks advanced as metal prices increase after four days of declines. Commodities have been buffeted this week by worries about the outcome of the European government debt crisis, which have sent traders to the relative safe haven of U.S. Treasuries.

A stronger greenback usually helps depress commodity prices, which are denominated in dollars, as it makes oil and metals more expensive for holders of other currencies.

The base metals sector gained two per cent Friday as the March copper contract was up six cents to US$3.33 a pound, but was off 6.3% for the week. Teck Resources (TSX:TCK.B) climbed 75 cents to C$35.18.

Bullion rose $20.70 to US$1,597.90 an ounce, taking the gold sector up 1.8%. Gold prices fell almost seven per cent this week. Barrick Gold Corp. (TSX:ABX) rose 86 cents to C$46.65.

The energy sector was up 2.13% as oil prices fell for a third day. The January crude contract on the New York Mercantile Exchange edged 34 cents lower to US$93.53 a barrel. Canadian Natural Resources (TSX:CNQ) was up 92 cents to C$36.10.

Industrials were also stronger, with Bombardier Inc. (TSX:BBD.B) rising six cents to $3.55 and Canadian National Railways (TSX:CNR) ahead 97 cents at $76.

Bank stocks were also supportive, with Manulife Financial (TSX:MFC) advancing 16 cents to $10.41.

In other corporate news, shares in telecommunications giant Telus (TSX:T) were off 86 cents to $55.67 as it said Friday it expects higher profits and revenues next year as it benefits from strong wireless and Internet subscription growth.

The company is also going to make a voluntary $100-million contribution to its pension fund.

Telus said revenues should come in at between $10.7 billion and $11 billion in 2012, four to 6.5% higher than its 2011 top line. The company is setting a big range for profit growth in 2012, with earnings per share expected between $3.75 and $4.15, somewhere between one and 12% higher than in 2011.

Valeant Pharmaceuticals International Inc. (TSX:VRX) has made a hostile offer for Irvine, Calif.,-based ISTA Pharmaceuticals Inc. for $327 million, including debt. Valeant shares climbed 65 cents to $47.16.