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Dec. 11, 2009 (Baystreet.ca) --
The Toronto stock market turned negative as losses in the telecom sector accelerated after the federal government gave the green light to a new player in the wireless business.
The S&P/TSX Composite had settled back 40.64 points to end the week at 11,423.93.
Losses were led by a sizable slide in the telecom sector after Industry Minister Tony Clement overruled an earlier decision by the Canadian Radio Television and Telecommunications Commission in allowing Globalive Wireless Management Corp. to join BCE Inc., Rogers Communications and Telus Corp.
But analysts said the issue goes beyond the matter of increased competition among the country's cellphone service providers.
Shares in BCE fell $1.07 to $27.35, Rogers lost $2.32 to $31.05 while Telus declined 78 cents to $32.90.
Early gains in oil prices disappeared as the U.S. dollar strengthened following the American retail report. The energy sector lost early gains, as Suncor Inc. lost 51 cents to $36.20.
The base metals sector was up as March copper gained three cents to $3.14 U.S. a pound.
First Quantum Minerals gained $2.94 to $78.99.
The gold sector was off, as Barrick Gold faded $1.19 to $41.90.
The tech sector was also a drag, with shares in Research In Motion Ltd. down $1.61 to $67.69. But the stock is up sharply this week after RIM announced a BlackBerry distribution agreement with China Mobile.
On the earnings front, sporting goods retailer Forzani Group Ltd. said it earned $11.4 million, or 37 cents per share, compared with a profit of $6.6 million, or 22 cents per share a year ago.
Revenue totaled $381.1 million, up from $362.9 million, while same-store sales were up 2.3%.
Analysts polled by Thomson Financial were on average expecting Forzani to earn 27 cents per share during the third quarter and its shares gained $1.18 to $14.12.
Le Chateau Inc. reported Thursday a drop in third-quarter earnings compared with a year ago as sales fell 10%. The clothing retailer earned $5.6 million or 23 cents per diluted share for the quarter ended Oct. 31 compared with a profit of $10 or 40 cents per share a year ago. Its shares declined 63 cents to $13.50.
Elsewhere, Freewest Resources Canada Inc. is urging its shareholders once again not to tender their shares to a takeover bid from Noront Resources Ltd. set to expire Friday. Freewest has been trying to fend off Noront since early October and has recommended its shareholders instead vote in favour of a friendly bid from Cliffs Natural Resources.
Freewest shares were unchanged at 96 cents.
On the economic front, the new housing price index rose 0.3% in October. An increase of 0.4% was forecast, compared to a gain of 0.5% in September.
The Canadian dollar was down 0.83 cents to 94.33 cents U.S.
ON BAYSTREET
The 14 TSX subgroups were evenly split between winners and losers. Global base metals led the winners' parade, gaining 1.9%, followed by metals and mining stocks, ahead 1%, while real-estate surged 0.9%.
The laggards were weighed on by telecoms, off 3.8%, information technology and gold stocks, off 1.4% each.
The TSX Venture Exchange skidded 0.49 points to 1,417.11, while the Nasdaq Canada index was down 15.97 points to 694.03
ON WALLSTREET
In New York, better-than-expected reports on retail sales and consumer sentiment lifted big blue chip stocks Friday, but gains were limited by weakness in technology and the strength of the U.S. dollar.
The Dow Jones Industrials added 65.67 points to end the week at a new year-long high at 10,471.50, while the S&P 500 gained 4.06 points to 1,106.41, and the Nasdaq slipped 0.55 points to 2,190.31.
Big consumer stocks' Coca-Cola, McDonald's and Walt Disney were among the Dow's gainers.
Conglomerates General Electric and 3M also gained, reflecting some economic optimism.
Trading volume has been light so far this month and trading more volatile as investors close the books early on a tumultuous year. As of Thursday's close, the S&P 500 has gained 62% since closing at a 12-year low on March 9.
Stocks jumped across the board Thursday as investors sorted through reports on jobs, housing, net worth and the deficit. But investors worked to sustain that advance Friday, amid a deluge of information.
Boeing, Coca-Cola, McDonald's, United Technologies and Alcoa were among the Dow's big winners.
United Technologies rose 2.2% a day after it forecast that profits would rise about 10% in 2010.
Alcoa rose as part of a bullish note on the mining sector from JPMorgan Chase.
Economically speaking, the government said retail sales climbed 1.3% during the month, after rising 1.4% in October.
Not including automobiles, sales climbed 1.2%. Both figures were more than double what was projected.
Elsewhere, the University of Michigan/Reuters preliminary consumer sentiment index moved to 73.4 from 67.4 in November. The index, which was expected to come in at 68.8, rose to its highest level since September.
In addition, U.S. business inventories rose 0.2% in October to $1.3 trillion U.S., the first increase since August 2008, the Commerce Department said Friday.
Treasury prices continued their decline, jacking up yields to 3.54% from Thursday's 3.49%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil slid 67 cents to $69.69 U.S.
Gold prices fell back seven dollars to $1,120 an ounce U.S.