The Toronto stock market moved lower Friday, even as an easing of fears about the European debt crisis.
The S&P TSX Composite Index slid 18.38 points to end the week at 11,927.59
The financial sector lost ground, even though as Manulife Financial fell three cents to $16.61. Scotiabank gained nine cents, however, to $51.09.
The TSX global gold index rose as Barrick Gold Corp. gained $1.33 to $47.43 and Goldcorp Inc. improved by 75 cents to $46.90.
The energy sector stepped back as oil prices reversed direction, though Canadian Natural Resources advanced 54 cents to $38.10.
The base metals sector was down, as the July copper contract on the Nymex dipped two cents to $2.88 U.S. a pound. Equinox Minerals stepped back six cents to $3.85.
Tembec Inc. forecast that its operational earnings for the fiscal third quarter ending June 26 will be up at least 42% from the prior three-month period. The Montreal-based forestry company says it expects third-quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), a measure of earnings that excludes a number of non-operational items, will be in a range of $47 million to $53 million.
That’s up from EBITDA of $32 million in the fiscal second quarter, ended March 27 and Tembec shares rose 49 cents or 28.1% to $2.23
Gammon Gold Inc. shares faded 27 cents to $6.77 as the company announced it is adding to its extensive mineral concessions in Mexico with a deal to acquire a 43,229-hectare block from Valdez Gold Inc. for $2.5 million. Valdez shares were up two cents or 15.4% to 15 cents.
Shoppers Drug Mart shares dipped 29 cents to $34.25 as the Globe and Mail said its popular rewards program is about to get less rewarding for its members just as new generic drug rules start to squeeze the retailer’s bottom line.
It says that changes to Shoppers Optimum loyalty program mean that its members will have to spend at least $800 before they begin to receive benefits, up from $700.
In economic news, Statistics Canada said foreign investments in Canadian Securities were up $12.40 billion in April, while Canadians acquisition of foreign securities slowed to $1.40 billion.
In another report, the agency said the composite leading index rose by 0.9% in May, mainly due to manufacturing components. The housing index recorded its first decline since April 2009, easing 1.2% in May.
Meanwhile, the number of Canadians receiving Employment Insurance benefits stood at 667,400, practically still in April, Statistics Canada said.
The Canadian dollar moved 0.56 cents higher to 97.93 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups lost ground, real-estate giving back the most at 1.8%, consumer staples was down 1.2% and telecoms descended 0.8%.
The only gainers were gold, ahead 1.1%, and materials, up 0.6%.
The TSX Venture Exchange added 6.80 points to 1,488.18 while the Nasdaq Canada index eased 4.70 points to 696.15.
ON WALLSTREET
In New York, stocks ended a choppy session higher Friday, with the market managing to carve out a second consecutive week of gains as buyers dipped back in after the May selloff.
The Dow Jones industrial average gained 16.47 points to end the week at 10,450.64.
The S&P 500 index added 1.47 points to 1,117.51. The Nasdaq composite index gained 2.64 points to 2,309.80.
Investors were contending Friday with the quadruple options expiration, a quarterly event in which stock index future and options and individual stock futures and options are all expiring simultaneously. The process can create increased volatility in the underlying issues, particularly in the last hour of trade.
But stocks were a bit directionless amid a lack of market-moving corporate or economic news --and the fact that it was a Friday before a summer weekend. The direction over the short term is likely to stay volatile.
Worries about the fiscal debt crisis and the fallout from the BP oil spill were among the factors that led to the market's selloff. Both issues continue to influence markets, but less dramatically than they did a month ago.
The week ahead brings reports on housing, jobs and the latest policy meeting from the Federal Reserve.
Stocks managed to rise Thursday at the end of a choppy session in which tepid reports on jobs and manufacturing vied with positive news out of Europe, where an auction of Spanish bonds saw strong demand.
With Greece's fiscal problems well known, the focus of late has turned to Spain and its ballooning debt, amid talk that it might need a bailout from European officials.
On Friday, European officials said Greece was moving forward in its efforts to cut its deficit. Separately, officials said they would release results of bank "stress tests," much as the U.S. did in the aftermath of the bank crisis here.
Shares of BP were little changed in the last hour of trade, erasing morning gains.
Investors weighed news that Moody's has downgraded its debt by three notches, but still kept it at investment grade. Fellow ratings agency Standard & Poor's cut BP's debt Thursday as the oil firm continues to struggle in the aftermath of the Gulf spill.
On Thursday, BP's CEO Tony Hayward was grilled by U.S. lawmakers who lambasted him for being oblivious to the risks that led to the spill and for not cooperating fully with investigators in its aftermath.
Earlier this week, BP said it was canceling its quarterly dividend and agreed with President Obama's request that it establish a $20-billion U.S. fund to cover Gulf damages.
Gains petered out with just select shares rising. Among the Dow's movers, Boeing, Caterpillar, JPMorgan Chase and Wal-Mart Stores all gained.
Treasury prices moved slightly upward, lowering the 10-year note's yield to 3.22% from 3.19% Thursday. Bond prices and yields move in opposite directions
The price of a barrel of oil improved 58 cents to $77.37 U.S.
Gold prices jumped $8 to $1,257 U.S. an ounce, on top of yesterday’s all-time high.
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