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Toronto stocks capped a winning week with a slightly lower close on Friday as energy issues handed back a small portion of their recent gains. The Toronto Stock Exchange's key S&P/TSX composite index fell 23.51 points, or 0.24 percent, to 9,754.69. For the week, the key index finished ahead 0.65 percent. Energy stocks were pulled down 0.5 percent by profit-taking after their recent run-up despite a near record high oil price of $56.72 a barrel, just off the new high it set earlier in the week.
Shares of EnCana Corp fell C$2.43, or 2.86 percent, to C$82.54, while Talisman Energy eased 93 Canadian cents, or 2.2 percent, to C$41.35.
Otherwise most of the market was stuck in neutral.
"There wasn't anything earth-shattering in terms of economic statistics or company specific news, so that's part of the reason," said Ian Nakamoto, market strategist at MacDougall MacDougall & MacTier Inc "We're in a holding pattern because, remember, in February we took off like a rocket."
Heavyweight financial stocks fell 0.5 percent, while the industrials sector eased 0.37 percent. Five of the 10 TSX subindexes finished lower.
The information technology group rose 1.3 percent, easily the best performing sector, as news that Nortel Networks Corp was set to release its delayed third-quarter results sparked some excitement.
Shares of Nortel gained 14 Canadian cents, or 4 percent, to C$3.59, while Research In Motion finished ahead C$2.44, or 2.5 percent, at C$99.99, building on the momentum it created earlier in the week when it settled a patent dispute.
After stumbling at the start of the year, the Toronto market has roared ahead and reached levels not seen in more than four years.
"The market is now at a much higher valuation level than it's been in some time," said George Vasic, director at UBS Warburg. "It's not over-valued but it's certainly no longer cheap and as a result people are a little bit edgier."
Market momentum was negative as 684 issues declined and 679 advanced on a robust volume of 353 million shares valued at C$6.8 billion.
The blue chip S&P/TSX 60 index handed back 0,98 points, or 0.18 percent, to close at 538.59. US markets finished flat as worries about higher interest rates and lofty oil prices persuaded many investors to avoid making major commitments heading into the weekend.
The Dow Jones industrial average finished 3.32 points, or 0.03 percent, to 10,629.67, while the Nasdaq composite index closed 8.63 points, or 0.43 percent, lower at 2,007.79.

Copyright Reuters, 2005

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