Toronto stocks eked higher Wednesday afternoon as banks fell, and energy producers retreated with tumbling oil prices after official data revealed a surprise build in U.S. crude inventories.
The S&P TSX Composite Index greeted the closing bell ahead 9.56 points, to 11,807.50, after spending much of the day in negative territory.
A bigger-than-expected fall in Canadian retail sales and a dismal report from the U.S. housing sector that raised concerns about the nation's economy weighed down sentiment.
The Financial Index shed ground with RBC down 1.2% to $53.75 and CIBC down 0.8% to $74.31
AGF Management gained a nickel to $14.77 The Toronto-based investment management firm said its second-quarter earnings rose nearly 60% from the year-ago period to $27.5 million, helped by a 17% growth in revenue from investment management operations. AGF also reported a 14.6% increase in assets under management, which rose to $42.9 billion at May 31.
Encana trimmed 15 cents to $34.01 and Talisman Energy lost a dime to $17.22. The U.S. Energy Information Administration said crude stockpiles added two million barrels in the week ended June 11, surprising economists who had been looking for a draw down of over one million barrels.
Crescent Point Energy fell 0.7% to $38.36. The oil and gas producer said it entered an agreement to acquire Vancouver-based oil explorer Ryland Oil Corp. for nearly $121.8 million, which includes the assumption of $26.4 million in debt. Ryland shares grew six cents or 16.2% to 43 cents.
Bankers Petroleum gave in 2.8% to $7.70. The Albanian-focused oil company announced plans to raise $100 million from a bought deal financing of 12.90 million of its common shares.
Meanwhile, strength in gold and technology stocks helped prevent a steeper slide.
Goldcorp advanced 2.8% to $46.41 and Barrick Gold added nearly 1% to $46.46
In the IT sector, Research In Motion rose 2.6% to $62.01 and Celestica gathered nearly 2% to $9.30.
In economic news, Statistics Canada said retail sales in the nation decreased 2.0% in current dollars to $36.20 billion in April after gaining 2.1% in March. Economists were expecting retail sales to fall only 0.4% in April.
Declines in sales were recorded across sectors and provinces. Among sectors, sales of motor vehicle and parts declined 4.8% and clothing and accessories saw sales dip by 5.2% in April.
The Canadian dollar dumped 0.94 cents to 96.25 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, all but four were higher. Global base metals advanced 2.4%, gold 1.5% and metals and mining picked up 1.2%.
The four laggards were weighed mostly by utilities, off 1%, financials, down 0.9% and industrials, sliding 0.3%.
The TSX Venture Exchange subtracted 2.05 points to 1,455.89 while the Nasdaq Canada index stepped forward 5.64 points to 678.75
ON WALLSTREET
In New York, stocks ended mixed Wednesday as investors struggled to balance the Federal Reserve's statement, a weak housing market report and a selloff in commodity prices amid the stronger euro.
The Dow Jones industrial average moved 4.92 points to close at 10,298.44.
The S&P 500 index stumbled 3.27 points to 1,092.04. The Nasdaq composite index fell 7.57 points to 2,254.23.
The central bank opted to hold the fed funds rate, a key overnight banking rate, steady at historic lows near zero. In its closely-watched statement, the bankers said the economic recovery is proceeding and the labor market is "improving gradually."
But the bankers also cautioned about the weakness in the housing market and the "less supportive" financial conditions as a result of the "development abroad," meaning the European debt crisis.
The euro reversed course Wednesday afternoon, sending already weak oil and gold prices and stocks even lower.
The euro continued to slide Wednesday, keeping Europe's debt dilemma in focus ahead of this weekend's G-20 meeting. Bond prices rose, lowering the corresponding yields. The dollar was mixed. Oil and gold shares tumbled.
Stocks slipped in the morning after the May new home sales report showed a steep drop in activity to the worst level on record. But stocks managed to cut losses in the hour leading up to the Fed announcement.
Energy, financial and technology shares declined. Some of the Dow's big losers included Chevron, Microsoft and Exxon Mobil.
On the upside, Boeing, JPMorgan Chase, IBM and Merck were among the components managing gains.
Adobe Systems tumbled Wednesday as investors took a "sell the news" approach after it reported higher quarterly sales and earnings late Tuesday that trounced estimates. The software maker also issued a current-quarter forecast that is higher than analysts' most recent estimates.
Treasury prices shot up sharply, lowering the 10-year note's yield to 3.11% from Tuesday’s 3.17%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil subsided $2.06 to $75.79 U.S.
Gold prices regained three dollars to $1,238 U.S. an ounce.
