Strong domestic economic data failed to inspire Toronto stocks on Friday and the market finished lower for a second straight session as investors locked away profits and awaited a fresh catalyst.
The Toronto Stock Exchange's S&P/TSX composite index ended down 30.58 points, or 0.35 percent, at 8,694.46 on a volume of 251.5 million shares worth C$3.3 billion. On the week, the index rose 0.6 percent.
"Given the fact we're still close to three-year highs, I'd expect the trend to be sideways for a little while," said Elvis Picardo, chief market strategist at Global Securities Corp.
"The rise over the past 11 months has been very substantial, so it's not surprising to see investors continue to take some profits here."
The markets shrugged off news that Canada's trade surplus jumped higher than expected to C$5.4 billion in December, while factory shipments rose more than forecast.
The data sparked a morning rally in the Canadian dollar.
Investors paid a little more attention to a US report on consumer sentiment, which was worse than expected.
The sharp fall in the University of Michigan's consumer sentiment report - to a preliminary reading of 93.1 in February from 103.8 last month - overshadowed strong results from US tech bellwether Dell Inc.
Eight of the 10 TSX groups finished lower, led by a 1.92 percent decline in telecoms, while energy issues dropped 0.75 percent and the tech sector lost 0.23 percent.
Telus Corp led telecoms lower after the country's second-biggest phone company reported a weaker than expected fourth-quarter profit.
Telus shares dropped C$1.35, or 4.93 percent, to C$26.05.
Nexen Inc fell C$4.49, or 8.76 percent, to C$46.75 to lead the energy sector lower.
Canada's No 4 oil and gas producer and explorer said it was temporarily abandoning exploration at its Shark prospect in the Gulf of Mexico.
The materials group fell 0.6 percent and its gold-mining subcomponent dropped a similar amount as bullion prices retreated ahead of the US Presidents Day holiday on Monday when US financial markets will be closed.
Among Toronto's gold stocks, Placer Dome Inc fell 45 Canadian cents, or 1.96 percent, to C$22.53, while Meridian Gold was down 31 Canadian cents, or 1.71 percent, at C$17.79.
The utilities and consumer staples group bucked the negative trend and ended higher.
Market momentum was narrowly negative as 650 issues declined and 629 advanced.
The blue-chip S&P/TSX 60 index slipped 2.21 points, or 0.45 percent, to 484.81.
In New York, the Dow Jones industrial average ended down 66.22 points, or 0.62 percent, at 10,627.85.
The Nasdaq composite index lost 20.05 points, or 0.97 percent, to 2,053.56.