Toronto stocks closed lower on Friday, their third day of decline, but the fall was much smaller than in the previous two days as a bounce by financials offset a continuing retreat by energy issues.
The Toronto Stock Exchange S&P/TSX composite index closed down 25.45 points, or 0.2 percent, at 11,869.59. A retreat by energy issues on Wednesday due to falling crude prices sparked a broad selloff that trimmed about 300 points off the TSX over two days.
"I think it may have just been a little bit overdone in the last couple days," said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd in Calgary, Alberta. On Friday, the energy sector fell 1.5 percent, as shares in oil and gas companies felt the effect of the continuing decline in crude prices.
New York October crude slid 1.6 percent, or $1.07, to settle at $66.25 a barrel on ample inventories and on BP Plc's announcement on Thursday that production at its big Prudhoe Bay field in Alaska could restart earlier than expected.
"Investors seem to be shying away from the energy sector until there's some stabilisation," said Rob Moss, oil and gas analyst at Acumen Capital Partners in Calgary.
Suncor Energy Inc was the day's biggest net decliner, falling C$3.44, or 4.1 percent, to C$80.10. EnCana Corp was down 85 Canadian cents, or 1.5 percent, at C$55.57. Gold miners also weighed on the index, as the sector, part of the materials subgroup, dipped 1.8 percent after New York gold futures dropped 1.2 percent to end at a 10-week low.
Barrick Gold fell 79 Canadian cents, or 2.2 percent, to C$35.18, while Centerra Gold was down 13 Canadian cents, or 1.1 percent, at C$11.13. Overall, three of the TSX index's 10 main groups were down. Financials, which make up about 30 percent of the index, provided some support, finishing up 0.6 percent. Toronto-Dominion Bank gained 42 Canadian cents, or 0.7 percent, to C$64.06, and Royal Bank of Canada rose 17 Canadian cents, or 0.3 percent, to C$48.44.
"The general rhetoric right at the moment is fairly positive on the financials, particularly as we're in a pausing sort of cycle as far as the rates are concerned," Kerkovius said. BlackBerry-maker Research In Motion also gave the market a boost as shares were up C$2.37, or 2.7 percent, at C$89.58. RIM unveiled a new device, the Pearl, on Thursday.
As a whole, the information technology sector was up 1.8 percent. Market volume was 226 million shares worth C$4 billion. Decliners outpaced advancers 754 to 721. The blue chip S&P/TSX 60 index closed 1.55 points lower, or 0.2 percent, at 669.85. On Wall Street, falling crude prices spurred share-price gains, lifting stocks out of two days of losses.
The Dow Jones industrial average ended 60.67 points higher, or up 0.54 percent, to 11,392.11. The Nasdaq Composite Index added 10.50 points, or 0.49 percent, to 2,165.79.
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