Toronto stocks closed lower on Friday as the latest round of corporate results could not make a thin market ignore growing concerns about corporate performance in the second half of the year.
The Toronto Stock Exchange S&P/TSX composite index slipped 14.74 points, or 0.18 percent, to close at 8,383.31. For the week, the key index rose 0.39 percent.
"Stocks just seem to focus on the negative, and the failure to recognise some of the bright spots out there just leaves (the market) drifting downward," said Glenn MacNeill, vice-president of investments at Sentry Select Capital Corp.
"The market is spending so much time worrying about what could be in front of it that it's failing to realise that we're in a reasonably good economy."
The materials sector, home to gold-mining issues, dropped 1.6 percent to lead all falling sectors, while the information technology group eased 1 percent. Four of the TSX's 10 subindexes finished lower.
Gold-mining stocks were hammered as the US dollar strengthened and ate away at the metal's appeal as an alternative investment. A higher US dollar makes dollar-denominated gold less attractive to non-US buyers.
Shares of Barrick Gold Corp slipped 53 Canadian cents, or 2 percent, to C$25.78, while Placer Dome Inc fell 70 Canadian cents, or 3 percent, to C$20.50.
Falconbridge Ltd also added to the downtrend in the materials sector as the nickel producer's second-quarter profit more than tripled but was slightly below expectations.
Shares of Falconbridge fell 85 Canadian cents, or 2.7 percent, to C$30.80, while Inco Ltd shares closed C$1.20, or 2.8 percent, lower at to C$41.78.
Investors remained sour on technology issues as a host of disappointing outlooks from some of the industry's big players have triggered a 14 percent slide in the sector since late June.
Telecommunications equipment provider Nortel Networks Corp dropped 8 Canadian cents, or 1.4 percent, to C$5.55, while contract electronics manufacturer Celestica Inc fell 62 Canadian cents, or 2.7 percent, to C$22.53.
With the market unable to shake out of its recent funk, some experts think the lack of buying enthusiasm will only get worse since earnings comparisons are going to get tougher in the coming quarters.
"We've been in a trading range here for four months and it almost looks like we will break through the bottom of it, which will not be good," said John Kinsey, portfolio manager at Caldwell Securities Ltd.
"Expectations were pretty high and now people are looking at the second half and starting to think this economy is going to slow."
Market momentum was negative as 669 issues declined and 572 advanced on light volume of 172 million shares valued at C$2.2 billion.
The blue-chip S&P/TSX 60 index closed 0.77 points, or 0.17 percent, lower, at 465.38.
US stocks closed lower as investors were unnerved by some weaker than expected forecasts from market leaders such as Coca-Cola Co and Microsoft Corp and fretted about possible attacks at next week's Democratic National Convention.
The Dow Jones industrial average dropped 88.11 points, or 0.88 percent, to 9,962.22, while the Nasdaq composite index slipped 39.97 points, or 2.12 percent, to 1,849.09.
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