Energy Stock Push Toronto Stock Exchange Final Trading 2010

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Toronto stock market was negative Friday, the final trading day of 2010 trading, as further declines in oil prices pushed energy stocks lower.

The S&P/TSX composite index lost 24.9 points to 13,409.51 while the TSX Venture Exchange rose 3.62 points to 2,265.3.

The Canadian dollar gained against the American currency, up 0.19 to 100.19 cents US.

The TSX energy sector declined 0.56 per cent as oil prices continued to fall after data Thursday showed a much smaller than expected decline in U.S. crude inventories in the latest week. The February crude contract in New York was off 55 cents to US$89.29 a barrel and Suncor Energy (TSX:SU) lost 31 cents to $37.87 while Canadian Natural Resources (TSX:CNQ) was down 32 cents to $44.02.

Financials also weighed on the TSX with Manulife Financial (TSX:MFC) down nine cents to $17.05 while CIBC (TSX:CM) shed 38 cents to $78.07.

Industrials also pressured the TSX as Canadian Pacific Railway (TSX:CP) was 44 cents lower to $64.27.

The base metals group climbed 0.31 per cent as copper prices moved further into record territory as the March contract on the New York Mercantile Exchange rose six cents from Thursday’s latest record close to US$4.42 a pound. Teck Resources (TSX:TCK.B) gained 56 cents to $61.52 while Quadra FNX Mining (TSX:QUX) was ahead 17 cents to $16.73.

The gold sector was slightly higher as bullion made headway with the February contract on the Nymex ahead $7.70 to US$1,413.60 an ounce. Goldcorp Inc. (TSX:G) gained eight cents to $45.42.

The TSX is set to end 2010 up almost 1,700 points or 14.3 per cent, led by a 46 per cent surge in the base metals sector, reflecting a 30 per cent rise in the price of copper on higher demand from China and other emerging markets.

The gold sector is ahead about 25 per cent as the precious metal smashed through record highs a number of times during 2010 as investors looked for a safe haven amid inflation worries and as a hedge against weaker currencies.

The energy sector advanced about 8.5 per cent as oil prices ran ahead as much as 15 per cent before declining sharply over the last two days, still a clear signal that the global economy is growing and demand rising.

The tech sector is up a slight 0.3 per cent as shares in sector leader Research In Motion Ltd. (TSX:RIM) fell about 18 per cent as investors worried about competition from other devices including Apple’s iPhone.

In the U.S., the Dow headed for an 11 per cent gain and the S&P 500 an advance of 13 per cent.

The Nasdaq is ahead about 17 per cent.

New York markets were also lower Friday as the Dow Jones industrial average fell 24.33 points to 11,545.38.

The Nasdaq composite index was down 11.71 points to 2,651.27 while the S&P 500 index slipped 2.41 points to 1,255.47.

Many of the world’s leading stock markets will end the year up higher as the global economy has recovered over the past 12 months from its worst recession since the Second World War.

However, concerns about inflation in the wake of higher commodity and energy costs, Chinese monetary policy moves to rein in price rises and cool a booming property market and Europe’s continuing debt crisis have meant that 2010 has not been all clear sailing.

A number of markets are ending the year down, including China’s Shanghai index which closed up 1.8 per cent to end the year about 14 per cent lower.

Investors in China have got increasingly worried in the last few months that the monetary authorities will have to take more aggressive action to cool the overheating economy and keep a lid on surging inflation. Last weekend’s surprise interest rate hike, the second since October, provided further evidence that 2011 will not be as easy as recent years.

Hong Kong’s Hang Seng index rose 0.2 per cent, to end the year seven per cent higher.

South Korea’s Kospi ended the year on Thursday about 22 per cent higher then at the start of 2010.

The most valuable stock market in Asia, Japan’s benchmark Nikkei 225 stock average, ended the year three per cent lower, as investors worry about the impact on exporters of the rising yen.

London’s FTSE 100 index lost 1.19 per cent, Frankfurt’s DAX lost 1.16 per cent while the Paris CAC 40 was down 1.19 per cent.

In corporate news, global steel giant ArcelorMittal has increased its bid for Baffinland Iron Mines Corp. (TSX:BIM) to $1.40 per share cash, matching the price offered by rival Nunavut Iron Ore Acquisition Inc. ArcelorMittal is offering to buy 100 per cent of Baffinland, whereas Nunavut Iron is proposing to acquire just 60 per cent of the company. Baffinland shares ran ahead six cents to $1.44.

Ottawa-based Wi-LAN Inc. (TSX:WIN) says a U.S. district court’s ruling bodes well for the technology company’s defence of one of its patents.

Wi-LAN said Friday that Judge T. John Ward revisited and revised his instructions at the company’s request to clarify the meaning of a technical term. As a result, the court has delayed the trial by about a month to Feb. 2 in order to give the defendants time to adjust their defence. Its shares rose 47 cents to $6.47.

SeAH Holdings Corp. of Seoul, South Korea, has substantially increased its holdings of Avanti Mining Inc. (TSXV:AVT) through a private placement and now owns nearly 13 per cent of the Vancouver-based company’s common shares. Avanti shares edged up half a cent to 34 cents.

Parkland Income Fund (TSX:PKI.UN), Canada’s largest independent fuel distributor has acquired Island Petroleum Products Ltd. of Prince Edward Island in a cash and equity deal valued at $22.6 million. Its units were down a penny at $11.39.

Imax (TSX:IMX) shares jump 12 per cent after reports that Sony Corp. is eyeing the giant movie screen operator for a takeover.