Profit-taking ends the winning streak of Toronto stocks

9 of TSX 10 main groups decline Bargain hunting lifts energy sector

Toronto stocks ended a sevenday winning streak yesterday as a wave of profit- taking and disappointing earnings weighed on the market, but firmer energy issues helped mitigate losses. The Toronto Stock Exchange’s S& P/ TSX composite index closed down 64.96 points, or 0.61 per cent, at 10,616.22. Nine of the TSX’s 10 main groups lost ground, led by the technology sector, which ended down 1.73 per cent, and the telecom group, down 1.69 per cent.

Overall momentum was slightly negative, as decliners outpaced advancers by 736 to 712. Volume was a moderate 266 million shares worth $ 5.05 billion. The heavyweight energy sector gained 0.25 per cent on bargain hunting with oil prices holding just below $60 ( U. S.) a barrel as mild weather dampened demand across the Northern Hemisphere.

U. S. demand for heating oil was expected to be about 42 per cent below normal this week as temperatures remained mild in the U. S. Northeast, the world’s largest oil consuming region, the U. S. National Weather Service said on Monday.

In Japan, the world’s thirdlargest oil consumer, where heating demand can soar in winter, the weather was set to remain normal or warmer than normal the next two weeks. Suncor Energy gained $1.18 ( Canadian), or 1.82 per cent, to $ 65.90, and EnCana Corp. was up 15 cents, or 0.28 per cent, at $ 53.85. Canadian Natural Resources was up 75 cents, or 1.36 per cent, at $ 55.75. Among techs, Nortel Networks lost 8 cents, or 2 per cent, to $ 3.86, while Research In Motion closed down $ 1.83, or 2.36 per cent, at $ 75.59, and Celestica slid 20 cents, or 1.74 per cent, to $ 11.30. Among telecoms, Telus Corp. finished down $ 1.47, or 3.14 per cent, at $ 45.28. The heavily weighted financial index lost 0.71 per cent, with Manulife Financial down 91 cents, or 1.39 per cent, at $ 64.69, and the Canadian Imperial Bank of Commerce, off $ 1.11, or 1.5 per cent, at $ 73.07. The blue chip S& P/ TSX 60 index ended down 3.63 points, or 0.6 per cent, at 598.73.

Goldcorp Inc. reported a sharp jump in third- quarter earnings after the markets closed. Boosted by increased gold production and sales, the Vancouver- based miner, which reports its results in U.S. dollars, said it earned $ 56.5 million ( U. S.), or 17 cents per share, for the three months ended Sept. 30. That compared with a profit of $ 9.9 million, or five cents per share, a year ago. Quarterly revenue grew to $ 203.7 million, up from $ 50.3 million. Goldcorp stock had closed down five cents at $ 23.04. On Wall Street, stocks declined as pessimism about a U. S. housing slowdown spread to related industries such as retailers and mortgage lenders. Market players will be eager to see if Bank of Canada governor David Dodge divulges any hints on how much further the central bank expects to hike its overnight interest rate when he gives a speech in Montreal today. The Dow Jones industrial average was down 46.51 points, or 0.44 per cent, to end at 10,539.72. The Nasdaq composite index was down 6.17 points, or 0.28 per cent, to close at 2,172.07.