The Toronto stock market ended the week on an upbeat note, as investors take profits from a strong rally that started in October and started to stall three weeks ago.
The S&P/TSX Composite Index increased 41.14 points to greet the closing bell at 12,496.96
The Canadian dollar was flat at 100.83 cents U.S.
The Toronto market is largely based on the resource and financial sectors. And while financials have made gains for the year, the base metals sector is flat while the gold group is down sharply, leaving the TSX up about 3.5% year to date.
Canada’s biggest telecommunications company BCE Inc. is buying Astral Media Inc. for $3.38 billion.
BCE already has a huge footprint across the media landscape through its ownership of Bell Media, which includes the CTV television network and the former CHUM radio network.
This transaction will give it a further slate of media assets that include television stations, specialty channels, radio stations and billboards across the country.
The transaction is valued at $50 per share. BCE shares dropped 31 cents to $39.75. Astral shares jumped $12.25, or 33.8%, to $48.50. Shares in Corus Entertainment, a partner of Astral that also owns a variety of radio and TV properties, ran ahead $1.63 or 7.5% to $23.40.
The energy sector gained with Suncor Energy ahead a penny to $32.92.
The financials sector was ahead with Scotiabank up 51 cents to $55.86 and Manulife Financial gave back a penny to $13.71.
The base metals sector was ahead while copper prices climbed three cents to $3.93 U.S. a pound. Teck Resources gained $1.21 to $36.75.
The gold sector was a major decliner, though Barrick Gold Corp. picked up eight cents toward the end to $43.62.
On matters economic, Statistics Canada reported this morning that manufacturing sales slid 0.9% to $49.6 billion in January, only the second such decrease in the last seven months.
The agency also reported that foreign investors reduced their holdings of Canadian securities by $4.2 billion in January after pumping $55.1 billion into this country over the previous six months.
Canadian investors acquired foreign securities for a ninth straight month, adding $1.3 billion to their holdings, purchasing equities while selling debt instruments.
ON BAYSTREET
The TSX Venture Exchange added 4.65 points to 1,606.17 while the Nasdaq Canada index moved 4.58 points higher to 418.92
Eight of the 14 Toronto subgroups were up on the day, with consumer discretionaries adding 1.9%, while materials and global base metals each improved 0.9%.
The half-dozen laggards were weighed mostly by health-care issues, down 1.2%, utilities, off 0.6%, and gold, down 0.5%.
ON WALLSTREET
In New York, stocks ended mixed Friday on less-than-stellar economic data and a slew of options expirations. But the major gauges posted strong gains for the week as investors remain optimistic about the economy.
The Dow Jones Industrials subsided 20.14 points Friday to 13,232.60.
The S&P 500 tacked on 1.57 points to 1,404.17, while the Nasdaq slipped 1.11 points to 3,055.26.
The choppy trading Friday came as investors digested reports on inflation, industrial production and consumer sentiment.
Apple was scheduled to release the new iPad Friday, and shares were up 0.5% in premarket trading. On Thursday, Apple shares touched an all-time high above the $600-U.S. –per-share benchmark, but slipped in early trading Friday.
Sprint ended its $9-billion U.S. agreement with LightSquared, a wholesale provider of 4G service, after it became increasingly clear that LightSquared's network may not get off the ground.
Meanwhile, options-related activity was adding to some of the choppiness.
Friday marks "quadruple witching," when four types of contracts expire -- those tied to market index futures, market index options, stock options and stock futures. While many traders try to settle out those contracts ahead of expiration, there is often some volatility on the actual day.
Despite the mixed performance Friday, the major indexes all posted gains of more than 2% for the week. The advance was driven by a string of upbeat economic reports, signs of strength in the banking sector and rising hopes for a lasting solution to the debt crisis in Europe.
At the same time, investors say stocks are being underpinned by the Federal Reserve, which has announced plans to keep interest rates low and maintain its current stimulus programs.
Stocks are also expected to benefit as investors pull money out of safe havens such as Treasurys in favor of more risky assets.
Economically speaking, Inflation for February increased by 0.4% in February after rising 0.2% the previous month, according to the government's latest numbers.
Higher gasoline prices were the biggest factor in the rise, accounting for more than 80% of the index's increase. The report showed consumer prices were up 2.9% year-over-year.
Industrial production was unchanged in February, according to data from the Federal Reserve. The report was expected to have shown an increase of 0.5%.
The University of Michigan Consumer Sentiment Index for March fell to 74.3 from 75.3 in February, according to a preliminary report. Economists had expected the index to have risen to 75.8.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.30% from 2.28% Thursday. Treasury prices and yields move in opposite directions.
Oil for February delivery hiked $1.89 to $107.19 U.S. a barrel.
Gold futures for April delivery eased $3.71 to end at $1,655.80 U.S. an ounce.
