By Jennifer Kwan
Reuters
Wednesday, January 10, 2007

Also published in:

TORONTO (Reuters) - The Toronto Stock Exchange's main index ended slightly lower on Wednesday as another drop in oil prices weighed on the energy sector, but mining and technology issues helped to cushion the fall.

Adrian Mastracci, fee-only portfolio manager at KCM Wealth Management in Vancouver, says, "I still anticipate a fair amount of volatility."

The S&P/TSX composite index closed down 10.44 points, or 0.1 percent, at 12,457.55.

Eight of the TSX index's 10 main groups ended higher, but the heavyweight energy sector dragged down the market with a 1.3 percent fall as the price of crude oil fell on a steep rise in heating oil stocks in the United States.

U.S. crude settled $1.62 lower at $54.02 a barrel, a 19-month low.

"Overall, we have a market that is just having trouble making up its mind on where it wants to go," said Fred Ketchen, director of equity trading at ScotiaMcLeod.

Apart from oil, a 0.5 percent selloff in the financial services sector also weighed on the market, added Ketchen. Financials comprise more than one-third of the index's weighting.

Suncor Energy was off C$2.22, or 2.6 percent, at C$82.03 and Petro Canada shed C$1.20, or 2.7 percent, to C$43.04.

The index got a bounce from the resource-laden materials group, which gained 1.1 percent on strength in some base metals. Zinc major Teck Cominco Ltd. gained C$2.55, or 3.3 percent, to close at C$79.90 and Inmet Mining Corp. rose C$3.59, or 7.1 percent, to C$54.23.

The information technology sector gained 1.7 percent as shares of BlackBerry maker Research In Motion rose C$4.86, or 3.2 percent, to C$158.87, reversing some of the losses of the previous session when RIM was hit by Apple Computer Inc.'s launch of its iPhone.

"I still anticipate a fair amount of volatility," said Adrian Mastracci, investment counsel and president of KCM Wealth Management Inc. in Vancouver.

In merger news, shares of Onex Corp. gained 14 Canadian cents, or 0.5 percent, to C$28.43 after Eastman Kodak Co. said it will sell its medical imaging business to a unit of Onex for up to $2.55 billion.

After the bell, CanWest Global Communications Corp. and a private-equity unit of Goldman Sachs & Co. said they have entered into a deal to buy specialty-TV group Alliance Atlantis Communications Inc. for C$2.3 billion ($1.96 billion).

CanWest shares closed down 41 Canadian cents, or 3.9 percent, at C$9.99 after the media group reported a sharply higher first-quarter profit and amid speculation of an imminent Alliance deal.

Market volume was 333 million shares worth C$5.9 billion. Decliners narrowly outpaced advancers 788 to 781. The blue chip S&P/TSX 60 index closed 2.41 points lower, or 0.34 percent, at 716.27.

Technology issues and earnings optimism gave U.S. stocks a boost. The Dow Jones industrial average gained 25.56 points, or 0.2 percent, to settle at 12,442.16. The Nasdaq composite index rose 15.50 points, or 0.6 percent, to finish at 2,459.33.

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.