Toronto stocks were lower Friday as oil prices retreated and technology shares slipped. At midday, the S&P/TSX composite index was down 38.58 points, or 0.4%, at 9,431.20 after starting the session with a slim gain.

Volume was light heading into the Victoria Day long weekend at 79 million shares.

The influential energy sector was off 1% and the technology group was down 0.%.

Only four of the 10 main TSX groups were higher, lead by a 0.5% gain in the telecoms group.

Oil prices fell in late morning trading. A barrel of light crude was quoted at US$46.80, down 12¢, on the New York Mercantile Exchange, after OPEC pledge to keep output at full tilt amid expectations of strong demand growth later in the year.

Shares of EnCana slipped 20¢, or 0.5%, to $41.92, while Canadian Natural Resources was off 18¢, or 0.5%, at $33.66.

Technology shares, which have been on a recent tear as investors took advantage of beaten-down prices, kept the market in negative territory as investors grabbed profits.

Shares of Research In Motion, the biggest drag on the index, were down $1.94, or 2%, at $95.81, while Nortel Networks slipped 2¢, or 0.6%, to $3.38.

Nortel and IBM have signed an agreement to collaborate on the design and development of new products and services, the companies announced Friday.

ACE Aviation Holdings, the parent of Air Canada, confirmed Friday it plans to convert part of its Aeroplan rewards program into an income trust. ACE shares were up more 79¢, or 3%, to reach $38.75.

The junior S&P/TSX Venture composite index was off 0.73 of a point at 1,597.37.

Data released before the market open that showed Canada’s annual inflation rate in April rose to 2.4% from 2.3% in March was not having any impact on stocks.

In New York, stocks headed modestly lower Friday with few earnings reports and no new economic data to encourage buying.

The major indexes have all risen more than 3% since last Friday’s close, buoyed by positive economic data and falling oil prices.

At midday, the Dow Jones industrial average was down 51.65 points, or 0.49%, to 10,441.54.

Broader stock indicators also moved lower. The S&P 500 index was down 4.50, or 0.4%, at 1,186.58, and the tech-heavy Nasdaq composite index dropped 5.49, or 0.3%, to 2,037.09.