TORONTO - The Toronto stock market closed little changed Monday but mining stocks found lift from strong Chinese economic data.
The S&P/TSX composite index closed 6.7 points lower at 11,947.13 after the main index initially surged more than 100 points amid data showing that China's exports jumped 18 per cent in December, much more than the five per cent increase that had been expected. It was also the first increase in more than a year.
"The economy is humming there. There are concerns, but by and large it's going great," said John Stephenson, portfolio manager at First Asset Funds.
"It's very positive and it's a continuation of the theme that where the growth is going to be is in the developing world in the future," Stephenson said.
The strong gains melted away during the morning as early improvements in the mining sector moderated and energy stocks turned negative as investors awaited the start of fourth-quarter corporate earnings reports.
The Canadian dollar moved 0.24 of a cent lower to 96.76 cents US.
The TSX base metals sector was the strongest component, ahead 1.5 per cent as March copper rose four cents to US$3.44 a pound. Teck Resources (TSX:TCK.B) advanced 41 cents to $42.20 while Labrador Iron Mines Holdings Ltd. (TSX:LIM) gained 41 cents or 13.53 per cent to $3.44.
The February bullion contract in New York closed up $12.50 to US$1,151.40 an ounce, taking the gold sector 0.94 per cent higher. Kinross Gold Corp. (TSX:K) improved 22 cents to $21.29.
Goldcorp Inc. (TSX:G) shares were up five cents to $43.85 after it said that its 2009 gold production was better than expected. The Vancouver-based company, which is Canada's second-largest gold producer, says it produced 2.4 million ounces of the precious metal last year.
The energy sector turned 0.46 per cent lower as oil prices fell, with the February crude contract on the New York Mercantile Exchange dropping 23 cents to US$82.52 a barrel. EnCana Corp. (TSX:ECA) fell 46 cents to $35.52.
Imperial Oil shares (TSX:IMO) were up 31 cents to $40.92 after the company was downgraded to market perform from outperform at BMO Capital Markets.
Talisman Energy Inc. (TSX:TLM) shares lost 73 cents to $19.85 as the Calgary-based international oil and gas company said it plans to spend $5.2 billion on capital projects in 2010, a 10 per cent increase over 2009.
On the economic calendar, there was mixed data from the housing sector.
Canada Mortgage and Housing Corp. said the annual rate of seasonally adjusted housing starts reached 174,500 units in December 2009, an increase from an annual rate of 164,800 units in November. The starts were also higher than the 161,800 units that had been forecast.
But Statistics Canada said the $5.9-billion in building permits contractors took out in November was down 4.6 per cent from October. The agency blames November's decline on decreases in the non-residential sector, which outweighed increases in the residential sector.
The TSX Venture Exchange rose 3.42 points to 1,608.53.
New York markets were mainly higher ahead of earnings coming out after the close from U.S. aluminum giant Alcoa Inc.
Keefe, Bruyette & Woods Inc. equity strategist Fred Cannon said investors will be looking at the earnings reports for confirmation that improvements in economic indicators aren't just signalling a restocking of depleted inventories but instead show businesses are drawing customers.
The Dow Jones industrial average was 45.8 points higher to 10,663.99, while the Nasdaq composite index declined 4.76 points to 2,312.41 and the S&P 500 index gained two points to 1,147.
In other corporate news, wholesale fertilizer producer Agrium Inc. (TSX:AGU) is expanding its retail presence in Canada. The Calgary-based company says it's establishing 33 retail outlets in Alberta and Saskatchewan under the name Crop Production Services (Canada). Agrium shares were ahead 84 cents to $71.54.
TransAlta Corp. (TSX:TA) says it will spend $100 million to expand the Kent Hills wind facility southwest of Moncton, N.B., and will sell the electricity to New Brunswick Power. Its shares were up 13 cents to $23.49.
WestJet Airlines Ltd. (TSX:WJA) shares eased 15 cents to $13.10 as the carrier announced that it had signed an agreement for Exp-Air Cargo to handle the sales and marketing aspects of the Calgary-based airline's cargo business. Neither company immediately responded to calls about the financial terms of the agreement, or how long contract would last.
Shares in utility company Fortis Inc. (TSX:FTS) declined 26 cents to $28.44 even as it increased its dividend and struck a bought deal with underwriters to sell 10 million preferred shares at $25 each to raise $250 million.
