Toronto stocks ended flat on Wednesday as high-flying technology issues took a breather, but the market still managed to erase earlier losses and was poised to push upwards again, analysts said.
The Toronto Stock Exchange's S&P/TSX composite index ended down 1.74 points, or 0.02 percent, at 8,621.88 on volume of 411 million shares worth C$4.6 billion.
Analysts said investors were showing some nervousness - and an inclination to tuck away profits - following the market's months-long rally on optimism about the economy and corporate profits.
"The expectations have been ratcheted a little too high so we've been seeing a little bit of softness for the last couple of days," Elvis Picardo, chief market strategist at Global Securities Corp, said.
After running up 35 percent this year alone, the technology sector continued its retreat and notched its second straight losing session.
Four of the 10 TSX subgroups ended lower, led by a 2.28 percent decline in techs.
Telecommunications equipment maker Nortel Networks Corp fell 13 Canadian cents, or 1.44 percent, to C$8.87, Sierra Wireless Inc dropped C$2.33, or 7.3 percent, to C$29.60, while contract electronics manufacturer Celestica Inc was off C$1.49, or 5.45 percent, at C$25.85.
The financial sector slipped 0.12 percent, led lower by Toronto-Dominion Bank, which fell 76 Canadian cents, or 1.67 percent, to C$44.70.
TD shares sagged after the bank doused hopes it may rekindle talks to merge its Waterhouse discount brokerage with another firm.
Overall market momentum was positive as 702 issues advanced and 594 declined.
The blue-chip S&P/TSX 60 index eked out an 0.33 point, or 0.07 percent, gain at 484.18.