Toronto stocks down on weaker resources

Toronto's main stock index finished lower on Friday as a drop in oil and gold prices sideswiped heavyweight resource issues. Suncor Energy fell 3.24 percent to C$40.61, while Imperial Oil slipped 1.55 percent to C$45.19 and Talisman Energy shed 2.15 percent to finish at C$22.75. The overall energy group, which makes up more than a quarter of the Toronto index, gave back 1.45 percent.
Brent crude futures fell nearly 2 percent after an apparently unfounded media report about a possible announcement from Egypt sparked speculation President Hosni Mubarak could be stepping down. Crude prices later pared losses, but were still down more than $1. Weak employment data out of the United States also added pressure as the US dollar firmed.
A stronger greenback can pressure dollar-dominated oil, because consumers using other currencies must pay producers more, curbing demand. The Toronto Stock Exchange's S&P/TSX composite index closed down 49.50 points, or 0.36 percent, at 13,791.85. Six of its 10 main groups ended higher.
The index gained 2.6 percent on the week, hitting its highest level since July 2008 on Thursday as upbeat sentiment on the economy spurred a rally. "It's been a pretty good week for the TSX on the whole... The tone of the markets and the resiliency has been quite surprising," said Elvis Picardo, an analyst and strategist at Global Securities.
"We're inching toward the 14,000 level, something which didn't seem possible two years ago, but here we are... The market has been a little cautious in terms of pushing the TSX ever higher, and I think that caution is reflected in today's modest decline as well." The hefty materials group, home to mining companies, was also a decliner, giving back 0.74 percent. Diversified miner Teck Resources skidded 1.86 percent to C$61.76, while uranium major Cameco Corp retreated 2.36 percent to 41.40.
Barrick Gold finished down 1.59 percent at C$47.51 while Kinross Gold fell 2.56 percent to C$16.75. Gold prices softened against a stronger US dollar and the rush to safe-haven bullion eased following the media report out of Egypt. For the week, however, the precious metal notched its first weekly gain of the year. On the upside, the TSX financial group, which makes up nearly 30 percent of the index, extended its rally, climbing 0.45 percent.
Toronto-Dominion Bank rose 0.77 percent to end at C$78.23. The market seemed to largely shrug off a strong Canadian employment report, which showed the economy had recouped all the jobs lost during the recession, offering further evidence the economic recovery was on track. South of the border, the jobs picture was mixed and weighed on US stocks.
"Even though the Canadian numbers were much better than consensus ... the market was sort of anticipating the strength in the jobs numbers," said Picardo. "No real surprises in either of the jobs numbers and I think that's reflected in the tepid market reaction."
BOND DRIFTS LOWER Canadian bond prices edged lower, following the path of US Treasuries, which weakened on worries about inflation and optimism over an economic recovery. Canadian issues, however, outperformed their US counterparts across the curve.
"The US (yield) is being pushed up harder, it's being led by the belly of the curve, Canada has had a similar move but more muted," said RBC's Chandler. The two-year bond was off 5 Canadian cents to yield 1.770 percent, while the 10-year bond dropped 34 Canadian cents to yield 3.421 percent.