The Toronto Stock Exchange closed lower for the session but solidly higher for the week as profit-taking eroded some of Thursday’s big gains, which had taken the TSX to a fresh five-year high.
New York markets extended a month-long rally to close higher amid preliminary signs of a strong start to the holiday shopping season.
Toronto’s S&P/TSX composite index was down 79.25 points at 11,002.57 after running up 162.02 points the day before, following the federal government’s decision to reduce dividend taxes and leave income trusts alone.
“There was that initial euphoria over the announcement and I think a bit of reality has set in,” said Matt Barasch, portfolio adviser at RBC Dominion Securities.
“I think people have started to think about the fact that the federal government’s announcement (on dividends) is very dependent on the provinces dramatically increasing their provincial tax credits on dividends.
The TSX netted 280.41 points or 2.62 per cent this week as the exchange Thursday surpassed its Oct. 3 high for the year.
An energy-sector led correction sent the market tumbling more than 800 points by the end of that month.
But the TSX has revived on a resurgence in energy, finance and gold stocks as bullion approaches $500 US an ounce, getting a final shove upward this week from Ottawa.
The TSX Venture Exchange was 2.24 points lower at 2,064.67. The Canadian dollar rose 0.17 of a cent to 85.51 cents US, rising 1.48 cents this week, its best weekly increase since the week ending Aug. 22.
“The Canadian dollar has done quite well, we’ve seen a significant rally against the euro, pound sterling, Japanese yen, Swiss franc and Australian dollar,” said George Davis, chief technical analyst at RBC Capital Markets.
The Dow industrials were 15.53 points higher at 10,931.62 in a fifth-straight winning week, with the blue-chip index netting 165.29 points this week.
The Nasdaq composite index was up 3.03 points to 2,263.01 to gain 35.94 points this week, while the S&P 500 index added 2.64 points at 1,268.25.
The U.S. retail sector was front-centre on “Black Friday,” so named because it’s seen as the day many American retailers start making a profit and go into the black for the year.
Among retail stocks, Apple Computer Inc.’s IPods figured prominently in online retailer Amazon.com Inc.’s just-released list of its top-selling holiday items in various categories for the three weeks from Nov. 1 to Nov. 22. Apple shares rose $2.23 to $69.34 US.
Electronic goods retailer Best Buy ran ahead $1.63 to $50.63 US while Wal-Mart Stores inched eight cents lower to $50.49 US.
On the TSX, the gold sector was highest as the price of gold in London was up $2.70 to $495.70 US an ounce. Kinross Gold Corp. added 19 cents to $9.46.
Cambior Inc. shares were eight cents higher to $2.70 after saying it lost 2,300 ounces of gold production after a leak caused delays at its Rosebel mill in Suriname.
Financials were the weakest sector, down one per cent, after rising sharply Thursday as Royal Bank lost 82 cents to $90.08 and CI Fund Management trimmed 59 cents to $24.71.
In the trust sector, Canadian Resource Income Trust fell 79 cents to $14.65, Brick Group Income Fund fell 43 cents to $8.85 and Precision Drilling Trust lost 92 cents to $37.01.
On the TSX, advances beat declines 772 to 681 with 245 unchanged.