The Toronto Stock Exchange's main index touched a record peak of 12,663.13 points on Friday before easing to end flat after a bullish week driven by producers of raw materials.
The S&P/TSX composite index closed down 13.82 points, or 0.1 percent, at 12,631.08 a day after it set a record closing high. Seven of the TSX index's 10 main groups were lower in the quiet session, including the heavyweight energy producers and financial services sector.
"I do think that some of the investors are seeing more of a softer patch coming up in the next little while and maybe there's some early evidence of taking a bit of a breather," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc in Vancouver, British Columbia.
Outside of the materials group, which climbed 0.9 percent, investors pared stock values after a week in which the index climbed 2.1 percent and surged past its April plateau, which was driven by booming crude oil and metal prices.
Although US crude futures rose toward $60 a barrel on Friday, prices have lingered much lower than in the spring. The TSX energy sector, which accounts for about one-third of the overall index, gained 1.6 percent this week, contributing modestly to the TSX's overall momentum.
EnCana Corp was down 49 Canadian cents, or 0.8 percent, at C$57.95 while Suncor Energy Inc slipped 45 Canadian cents, or 0.5 percent, to C$87.15. Producers of raw materials, which account for about 15 percent of the overall index, surged 5.6 percent this week on the back of hot metal prices. Nickel hit a record high and zinc approached peak levels.
Producers were the three biggest weighted gainers on the TSX, led by Goldcorp, up 77 Canadian cents, or 2.5 percent, at C$32.07. Barrick Gold advanced 33 Canadian cents, or 1 percent, to C$33.52 while zinc giant Teck Cominco added C$1.50, or 1.8 percent, to C$86.17.
After leading the pack higher the day before, Manulife Financial Corp was the biggest loser by weight, sinking 33 Canadian cents, or 0.9 percent, to C$38.22. The financials group is up 13.6 percent on the year, among the TSX's best performers, but slipped 0.2 percent on Friday.
After the bell, Telus Corp said it has aborted plans to convert to an income trust. Shares in Canada's No 2 telephone company closed 43 Canadian cents lower, or 0.8 percent, at C$56.60. The benchmark index has gained 12 percent on the year. "Even though today was down a bit, year over year, we're still up quite a nice sum," Mastracci said.
"But I don't take the position that we've built a great base and we're just going to sail upward - I think that would be a little foolhardy." Market volume was a light 288 million shares worth C$3.5 billion. Advancers outpaced decliners 897 to 664. The blue chip S&P/TSX 60 index closed 1.76 points lower, or 0.2 percent, at 727.72.
In the United States, most stocks fell in light trading as a skidding US dollar renewed inflation worries. The Dow Jones industrial average fell 46.78 points, or 0.38 percent, to close at 12,280.17 in a holiday-shortened session. The Nasdaq composite index slipped 5.72 points, or 0.23 percent, to close at 2,460.26.