The Toronto stock exchange was lower Thursday afternoon as energy and mining stocks fell alongside prices for oil and gold.
The S&P/TSX Composite Index subtracted 57.81 points by the closing bell Thursday at 14,029.37
The Canadian dollar moved up 0.49 of a cent at 102.4 cents U.S.
Investors were disinclined to follow up a sharp gain of almost 100 points Wednesday amid ongoing serious challenges to the global economy, including Japan’s struggle to contain a nuclear crisis caused by the Mar. 11 earthquake, Portugal’s unresolved financial problems and uprisings in the Middle East.
The energy sector fell with Canadian Natural Resources down 59 cents to $47.76 while Suncor Energy shed 36 cents to $43.73.
The showing added to losses sustained on Wednesday amid a surprise new oil windfall tax in Britain.
The British government plans to levy a new tax on oil companies’ profits worth two billion pounds ($3.2 billion) and in return will lower the country’s gas tax by a penny a litre.
This was bad news for companies such as Calgary-based Nexen Inc. which operate in the North Sea. They will see their tax on production grow from 50% to 62%
Nexen shares lost 30 cents to $23.89 after falling 7.92% Wednesday.
Gold stocks also lost ground as bullion gave up early gains. Barrick Gold Corp. faded 73 cents to $50.32 and Goldcorp Inc. shed $1.19 to $47.65.
Copper prices were unchanged at $4.43 U.S. after shooting up 12 cents Wednesday, partly because investors reckon that massive rebuilding in Japan from the huge earthquake and tsunami will spur demand for the metal used extensively in construction.
Financials were also a drag on the TSX with CIBC down $1.22 to $83.40.
The base metals sector was ahead as Quadra FNX Mining Ltd. gave back 19 cents to $13.65 and Teck Resources was up $1.49 to $53.39.
The tech sector advanced, with Research In Motion Ltd. ahead $1.59 to $62.49 ahead of the BlackBerry maker’s earnings coming out after the close.
Investors are feeling slightly better about Japan now that a complete nuclear meltdown has been avoided at the Fukushima Dai-ichi nuclear plant, which has leaked radiation since the tsunami engulfed its crucial cooling systems.
But other factors weighed on sentiment: the impact on Japanese companies from rolling electricity blackouts, the possibility of aftershocks, anxiety over elevated levels of radioactive iodine in Tokyo’s tap water, and import bans on Japanese food from the region affected by radiation.
In other corporate news, Muzak, known for its soothing strains of music played in elevators and stores, is being bought by Toronto based in-store music provider Mood Media Corp. for $345 million U.S. Mood Media said Thursday the acquisition will create an "in-store media powerhouse" that will be heard in 470,000 commercial locations around the world and its shares gained 21 cents to $3.30.
Bombardier Inc. said it has strengthened the sales argument for the new CSeries jet and other aircraft by partnering with China’s leading aircraft manufacturer. Bombardier and Commercial Aircraft Corporation of China Ltd. (COMAC) signed a framework agreement Thursday that aims to ensure products offered by the two companies will totally complement each other. Bombardier shares rose 12 cents to $6.53.
On the economic slate, Statistics Canada said the number of people receiving regular Employment Insurance benefits declined by 13,300, or 2% in January to 640,200, the sixth decline in seven months.
ON BAYSTREET
The TSX Venture Exchange slid 13.43 points to 2,304.58, while the Nasdaq Canada index took on 15.33 points to 804.58
In Toronto, losers outnumbered gainers eight to six among the 14 subgroups. Gold gave up 1.1% of its strength, while energy decreased 0.7% and materials settled 0.6%.
Information technology led the half-dozen winners, picking up 1.4%, while metals and mining progressed 0.8% and global base metals pulled ahead 0.4%.
ON WALLSTREET
In New York, stocks rose Thursday, as positive earnings in the technology sector offset ongoing concerns related to Japan and spreading unrest in the Middle East.
The Dow Jones industrial average moved 84.54 points higher to close at 12, 170.60
The S & P 500 was up 12.12 points to 1,309.66. The tech-rich Nasdaq Composite Index gathered 38.12 to 2,736.42.
The biggest gainer in the S&P 500 was Red Hat -- a major Linux vendor -- with shares surging 17%. The company reported stellar earnings and raised its forecast.
Semiconductor maker Micron Technologies also helped lift the tech sector, after it reported results well ahead of estimates. Shares were up 8%. Chip maker Nvidia followed Micron's lead, rising 8% as well.
Despite positive corporate earnings, investor concerns over what's going on overseas remain at the forefront.
As the civil war in Libya rages on, uprisings and violence are spreading across the Middle East.
Walgreen Co. said early Thursday it will buy online retailer Drugstore.com for $409 million U.S.
Shares of Drugstore.com soared more than 110% on the news.
Best Buy shares fell 3%. The company reported earnings that squeaked past analyst estimates.
After the bell, software giant Oracle and smartphone maker Research in Motion reported.
Analysts expect RIM to have earned $1.76 U.S. a share, while Oracle is expected to post a 50-cents-U.S. per-share profit.
Weekly filings for first-time unemployment benefits were roughly in line with expectations, but stayed below 400,000 and continuing claims remained low as well.
European stocks rose, shrugging off downbeat reports from Portugal and Spain.
Portugal's Prime Minister, Jose Socrates, resigned early Wednesday after parliament rejected his administration's latest proposal for austerity measures, reports said. The plan is aimed at avoiding a bailout.
Meanwhile, ratings agency Moody's downgraded its debt ratings of 30 Spanish banks. Moody's added that the outlook remained weak, and the banks "show little sign of strengthening materially in the foreseeable future."
On the economic front, before the start of trade, the U.S. Commerce Department reported durable goods orders fell 0.9% in February, compared with a 3.6% rise posted in January. Economists were expecting a 1.1% rise in February.
The price on the benchmark 10-year U.S. Treasury fell back, raising yields to 3.40% from Wednesday’s 3.35%. Treasury prices and yields move in opposite directions.
Oil for February delivery settled back 73 cents to $105.02 U.S. a barrel.
Gold futures for April delivery fell $3.10, or 0.2%, to $1,439.90 U.S. an ounce.
