By Jennifer Kwan
Reuters
Wednesday, May 09, 2007

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TORONTO (Reuters) - The Toronto Stock Exchange's main index ended lower on Wednesday, snapping a five-session winning streak, as the market struggled to find direction after its recent rise on big takeover announcements.

Adrian Mastracci, fee-only portfolio manager at
KCM Wealth Management in Vancouver, says, "The Fed just didn't have the right language to make it go one way or the other in a big way."

The S&P/TSX composite index closed down 20.20 points, or 0.2 percent, at 13,895.16, retreating from the record high of 13,950.89 it hit earlier in the session.

"There hasn't been any big news per se, such as some big merger, and there hasn't been anything in the way of earnings reports to tilt people one way or another," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

Six of the TSX index's 10 main groups were lower, with the heavyweight oil and gas sector down 0.6 percent as U.S. June oil prices shed 71 cents to settle at $61.55 a barrel.

Talisman Energy Inc. fell 58 Canadian cents, or 2.7 percent, to C$21.30 after the company reported a jump in quarterly profit on a big gain from asset sales.

Also weighing on the market was the consumer discretionary group, down 0.7 percent, and utilities, down 0.6 percent.

The lingering glow of recent takeover announcements, including aluminum maker Alcoa's bid for Alcan , helped to lift shares of mining companies by 2.4 percent. Zinc major Teck Cominco added C$1.08, or 2.4 percent, to C$45.83.

The market shrugged off the Federal Reserve's widely expected decision to hold U.S. interest rates steady at 5.25 percent.

"The Fed just didn't have the right language to make it go one way or the other in a big way," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc. in Vancouver.

Elsewhere, shares of Agricore United gained 28 Canadian cents, or 1.4 percent, to C$20.34 after it agreed to be taken over by Saskatchewan Wheat Pool , which boosted its offer to C$1.8 billion in cash and debt.

Shares of Saskpool rose 74 Canadian cents, or 8.6 percent, to C$9.36.

Privately held James Richardson International Ltd., which had been competing with Saskpool to win Agricore, withdrew its friendly offer but will buy certain grain elevators from Saskpool as part of the deal.

Shares of Magna Entertainment Corp. dropped 4 Canadian cents, or 1.2 percent, to C$3.35 after it reported a rise in first-quarter profit, helped by higher revenue and the sale of some non-core assets.

Shares of commercial printer Quebecor World Inc. slipped 22 Canadian cents, or 1.5 percent, to C$15 after it reported a first-quarter loss, partly due to restructuring charges.

Market volume was a heavy 475 million shares worth C$8.5 billion. Advancers outpaced decliners 818 to 797. The blue chip S&P/TSX 60 index closed 2.98 points lower, or 0.38 percent, at 791.47.

South of the border, the Dow Jones industrial average rose 53.80 points, or 0.4 percent, to 13,362.87, while the Nasdaq composite index ended up 4.59 points, or 0.2 percent, at 2,576.34.

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