The Toronto Stock Exchange's main index closed slightly lower on Friday despite a rebound in gold-mining issues, but managed to hang on to end the week above the 12,000 level.
The key S&P/TSX composite index closed down 11.18 points, or 0.1 percent, at 12,044.83. It gained 0.8 percent on the week and is up 6.9 percent so far this year. "We're kind of treading water here," said Rick Hutcheon, president and chief operating officer at RKH Investments in Toronto.
"We're trying to get a grip on how much the US economy is or is not slowing, whether or not inflation is going to continue to be an issue," Hutcheon said.
"We're also in the midst of a very lacklustre period in the market in terms of people being away, the levels of the market are a little suspect only to the degree that they can be pushed around very easily," he said.
Overall, four of the TSX index's 10 main groups ended lower.
The gold-mining sector gained 0.4 percent as New York gold futures closed down but above a three-week low to end at $621.70, losing $3.50 on Friday. Barrick Gold, the world's largest producer, advanced 71 Canadian cents, or 2 percent, to C$35.54. Goldcorp gained 31 Canadian cents, or almost 1 percent, to C$32.22. The energy group, which makes up about 30 percent of the main index, ended just 0.06 percent higher.
The price of oil rose more than $1 on Friday to finish at $71.14 a barrel amid renewed concerns over Iran's atomic program. Imperial Oil slipped 43 Canadian cents, or almost 1 percent, to close at C$43.29 while Talisman Energy was up 28 Canadian cents, or 1.5 percent, at C$19.53.
The utilities subgroup ended 1 percent lower, while the financial sector lost 0.5 percent, with the big banks set to report earnings next week. Shares of Royal Bank of Canada fell 63 Canadian cents, or 1.3 percent, to close at C$48.79. Manulife Financial fell 24 Canadian cents, or 0.7 percent, to finish at C$36.08.
On the plus side, tech shares ended 0.5 percent higher as Nortel Networks was up 5 Canadian cents, or 2 percent, to close at C$2.38. Open Text Corp stocks gained 50 Canadian cents, or 2.9 percent, to C$17.66.
Market volume was 235.6 million shares worth C$4.38 billion. Advancers outpaced decliners 779 to 676. The blue chip S&P/TSX 60 index closed 0.58 points lower, or 0.08 percent, at 684.06.
"The US is seeing more and more evidence the consumer confidence is slipping a little, but again the investors haven't really dealt with that yet," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc, in Vancouver. "The investors are still somewhat bullish. If you've got a broad portfolio, then you should do really well," he said.
US stocks closed higher for the fifth straight session. The Dow Jones industrial average gained 46.51 points, or 0.41 percent, to end at 11,381.47. The Nasdaq composite index finished up 6.34 points, or 0.29 percent, at 2,163.95. For the week, the Dow average gained 2.65 percent and the Nasdaq jumped 5.16 percent.