The Canadian Press

The Toronto stock market closed lower Friday, with losses particularly heavy in the telecom sector after the federal government opened the wireless business to a new competitor.

The S&P/TSX composite index fell 40.64 points to 11,423.93, for a loss of 86.87 points or 0.75% this week.

The telecom sector slid 3.74% after Industry Minister Tony Clement overruled an earlier decision by the Canadian Radio-television and Telecommunications Commission and gave the green light to Globalive Wireless Management Corp. The company will join BCE Inc. (TSX:BCE), Rogers Communications (TSX:RCI.B) and Telus Corp. (TSX:T) in providing cellphone service.

But analysts said the issue goes beyond the matter of increased competition among the country’s cellphone service providers.

“The issue is psychological – you allow one in, what’s going to happen in the industry and what happens to other industries that have been semi-protected?” said Irwin Michael, portfolio manager at ABC Funds.

“It’s the big picture; it’s the government sentiment about opening it up to others.”

Shares in BCE fell $1.07 to $27.35, Rogers lost $2.32 to $31.05 while Telus declined 78 cents to $32.90.

The Canadian dollar was down 0.85 of a cent to 94.35 cents US.

Markets found some lift from news that China’s November exports were down only 1.2% from a year earlier, the smallest decline this year, as budding recoveries in the U.S. and other big markets helped revive demand.

It was a dramatic improvement from October, when exports slid 13.8%.

The report followed Canadian and U.S. government data Thursday that showed a big jump in export activity as low interest rates and recovering economies raise demand for goods and services around the globe.

Other data showed U.S. retail sales rose 1.3% in November, more than double the 0.6% increase economists had expected.

Excluding autos, retail sales jumped 1.2%, which was triple the 0.4% advance economists expected.

Early gains in oil prices disappeared as the U.S. dollar strengthened following the American retail report and the January crude contract on the New York Mercantile Exchange declined 67 cents to US$69.87 a barrel. The energy sector ended the session flat and Suncor Inc. (TSX:SU) lost 51 cents to $36.29.

The base metals sector was up 1.12% as March copper gained three cents to US$3.13 a pound. First Quantum Minerals (TSX:FM) gained $2.94 to $78.99.

The gold sector was off 1.45% as the February bullion contract on the Nymex dropped $6.30 to US$1,119.90 an ounce. Barrick Gold (TSX:ABX) faded $1.19 to $41.90.

The tech sector was also a drag, down 1.33%. Research In Motion Ltd. (TSX:RIM) shares declined $1.61 to $67.69, but the stock was up sharply for the week after RIM announced a BlackBerry distribution agreement with China Mobile. RIM’s quarterly earnings come out next Thursday.

The TSX Venture Exchange declined 0.49 of a point to 1,417.11.

New York markets were mainly positive following the Chinese and American economic data.

And a separate report showing an increase in consumer confidence signalled that spending could continue to rise. The preliminary Reuters/University of Michigan consumer sentiment index rose more than expected in December.

The Dow Jones industrial average moved up 65.67 points to 10,471.5, gaining 82.53 points or 0.79% this week.

The Nasdaq composite index dipped 0.55 of a point to 2,190.31 while the S&P 500 index climbed 4.06 points to 1,106.41.

On the earnings front, sporting goods retailer Forzani Group Ltd. (TSX:FGL) said it earned $11.4 million, or 37 cents per share compared with a profit of $6.6 million or 22 cents per share a year ago. Revenue totalled $381.1 million, up from $362.9 million, while same-store sales were up 2.3%. Analysts polled by Thomson Financial were on average expecting Forzani to earn 27 cents per share during the third quarter and its shares gained $1.18 to $14.12.

Le Chateau Inc. (TSX:CTU.A) reported Thursday a drop in third-quarter earnings compared with a year ago as sales fell 10%. The clothing retailer earned $5.6 million or 23 cents per diluted share for the quarter ended Oct. 31 compared with a profit of $10 or 40 cents per share a year ago. Its shares declined 63 cents to $13.50.