En Francais

By: Cameron French
Reuters
Friday, March 14, 2003

TORONTO, March 14 (Reuters) - Toronto stocks pared gains late on Friday as enthusiasm for the previous day's rally faded amid renewed fears of a U.S.-Iraq war, but the market managed to hang on to finish in positive territory.

The Toronto Stock Exchange S&P/TSX composite index .GSPTSE finished up 9.05 points, or 0.14 percent, at 6,304.49. For the week, the benchmark index slid 0.9 percent.

"It looked like maybe we could turn in a two-day rally, but the positive sentiment faded a little bit and we still have this pending war facing us," said Wesley Beal, a North American economist with IDEAglobal in New York.

"We don't really know how to completely discount that."

The market has suffered through 3 straight losing weeks as uncertainty over the cost and potential harm to the economy of a U.S.-led war in Iraq have clamped down on sentiment and pushed investors to the sidelines.

But many believe there is pent-up potential for a buying spree once a clearer picture of the Iraq crisis emerges.

"I do think investors are trying to find a reason to rally, but down deep there still is a lot of worry and distraction about heating prices, the uncertainty of the war, and the lack of growth in earnings," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc.

Volume was a steady 178.3 million shares traded, valued in total at C$2.3 billion. Market momentum was positive, as advancing shares outnumbered decliners 568 to 497.

Bargain hunting sparked markets on Thursday and early Friday, but enthusiasm waned in the afternoon as the market looked ahead to an emergency summit on Sunday as global powers wrangle over whether to wage war on Iraq.

Leaders of the United States, Britain and Spain will meet in a last-gasp diplomatic effort to overcome strong opposition in the U.N. Security Council to a resolution paving the way for war.

However, the market still harbors optimism that any conflict may be quick. Such enthusiasm pushed oil prices lower, as investors bet that a war would less disruptive to crude supplies than previously thought.

The weaker oil prices knocked Canadian energy stocks down 2.39 percent. Encana Corp. ECA.TO fell C$1.34 to C$46.51, Petro-Canada PCA.TO retreated C$1.57 to C$49.80, and Talisman Energy Inc. TLM.TO slid C$1.52 to C$57.35.

U.S. markets were mixed, as the Dow Jones industrial average .DJI rose 37.96 points, or 0.49 percent, to 7,859.91, while the tech-heavy Nasdaq composite .IXIC retreated 0.44 points, or 0.03 percent, to finish 1,340.33.

In Toronto, the blue-chip S&P/TSX 60 index .TSE60 inched ahead 0.05 points, or 0.01 percent, to end at 359.16.

Overall, seven of the 10 TSX sectors rose on the day, as gold issues recovered from seven straight losing sessions to rise 4.13 percent.

Placer Dome Inc. PDG.TO advanced 55 Canadian cents, or 4.2 percent, to C$13.75, while Kinross Gold Corp. K.TO leaped 68 Canadian cents, or 8.1 percent, to C$9.08.

Among individual decliners, Hemosol Inc. HML.TO fell C$1.33, or 64.9 percent to 72 Canadian cents after the company said it had suspended clinical trials of its Hemolink blood substitute, putting the future of its main product in question.

Research in Motion Ltd. RIM.TO rose C$1.26, or 7.1 percent, to C$19.00, as the market applauded the company's launch of two new, lightweight BlackBerry e-mail devices for European customers announced earlier in the week.

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.