By: Cameron French
Reuters
Thursday, February 20, 2003

TORONTO, Feb 20 (Reuters) - Toronto stocks ended flat on Thursday as strength in energy shares kept the Toronto Stock Exchange from following U.S. markets lower, although any hope of strong gains was lost in the thickening fog of war worries.

The Toronto Stock Exchange S&P/TSX composite index .GSPTSE ended the session up 6.43 points, or 0.1 percent, at 6,566.11. Volume was on the low side of moderate, as 176.2 million shares were traded, valued at C$2.19 billion.

The market has suffered in recent weeks under the weight of anxiety about a war in Iraq and concerns about North Korea's nuclear program.

Added to that, investors on Thursday had to deal with U.S. economic figures that showed higher than expected wholesale inflation, a record U.S. trade deficit and higher weekly jobless claims.

Meanwhile, Statistics Canada released data showing a surprise decline in the still-large trade surplus and a much smaller than expected 0.2 percent rise in retail sales.

"You take that along with the continued concerns about Iraq and North Korea and we have a continuing selling in the market from yesterday," said Elvis Picardo, chief investment strategist at Global Securities Corp.

"But because of the high weighting that we have in energy, the TSX is looking less vulnerable than the U.S. indices at this point."

Six of the 10 TSX subgroups finished the session higher, led by a 0.83 percent rise in energy issues.

The blue-chip S&P/TSX 60 index .TSE60 rose a marginal 0.09 points, or 0.02 percent, to 371.80. Market momentum was on the positive side, as 563 issues advanced, and 503 declined.

EnCana Corp. ECA.TO , North America's biggest independent oil explorer and producer, rose 65 Canadian cents to C$47.65, after saying its fourth-quarter profit surged on growing sales and higher prices for oil and gas. The company also said it was on track to meet its output targets for 2003.

Hurricane Hydrocarbons Ltd. HHLa.TO rose 50 Canadian cents to C$16.85, while Suncor Energy Inc. SU.TO advanced 44 Canadian cents to C$26.65.

U.S. markets were lower, as the Dow Jones industrial average .DJI fell 85.64 points, or 1.07 percent, to 7,914.96, while the tech-laden Nasdaq composite index .IXIC retreated 3.09 points, or 0.23 percent, to finish at 1,331.23.

Analysts said the TSX is unlikely to see any strong gains soon, as Iraq, Korea, and a sputtering U.S. economy keep investors away.

"In Canada, we only represent about 3 percent of the total world market. As investors, we're somewhat nervous," said Adrian Mastracci, president of KCM Wealth Management Inc.

"But as soon as companies can see a little bit more visibility in their earnings, that's when things are really going to start to turn around, and companies will then be able to make some plans to spend some money."

Among the top individual performers on the index, Biovail Corp. BVF.TO jumped C$1.93, or 3.8 percent, to C$52.80 after the biopharmaceutical company said the U.S. Food and Drug Administration had approved its Teveten HCT hypertension drug.

CCL Industries CCLb.TO rose 61 Canadian cents, or 3.7 percent, to C$16.96, after the manufacturer of plastic and aluminum packaging reported a fourth-quarter profit, helped by a 8.8 percent jump in sales.

Meanwhile, Nortel Networks Corp. NT.TO fell 19 Canadian cents, or 5.3 percent, to C$3.39, pulling the TSX information technology sector down 0.89 percent.

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.