The Canadian Press

Malcolm Morrison

The Toronto stock market closed little changed Friday as mixed U.S. economic data failed to provide a clear picture on the pace of the economic recovery.

The S&P/TSX composite index edged 1.81 points lower to 11,629.63.

Investors were happy with data from the U.S. Commerce Department that showed gross domestic product grew at an annualized rate of 5.9% in the fourth quarter. That was a bit better than the original 5.7% reading.

And a snapshot of American manufacturing activity in the U.S. Midwest was also positive. The Chicago Purchasing Managers Index hit 62 in February, unchanged from January and better than the 59 reading that had been expected.

But investors hoping for an improvement in the housing sector were disappointed by a report that showed U.S. home sales fell 7.2% in January in a second straight month of big declines. The showing was far weaker than the 0.9% increase that had been forecast.

“There’s a lot of uncertainty right now as to the direction or the strength of the economic recovery,” said Jennifer Dowty, portfolio manager at MFC Global Investment Management.

“And a lot of it is predicated on a global recovery and then, with the sovereign debt issue and the Greece situation uncertain and unresolved, that has… led the market to be rather directionless. Investors are hesitant to step up and to either buy or to sell at this point until we get some clarity.”

The TSX ended February considerably higher than where it started the month, ahead almost 5%. But the main index is still about 100 points below where it began the year.

The Canadian dollar was up 0.61 of a cent at US95.01¢ as Statistics Canada reported that the current account deficit on transactions with the rest of the world narrowed to C$9.8 billion in the fourth quarter of 2009, largely reflecting an increase in the energy sector. The current account has been in deficit for the last five quarters, following almost 10 years of surpluses.

The base metals sector was the strongest advancer amid higher commodity prices, up 0.82% with May copper ahead 7¢ at US$3.28 a pound. Sherritt International (TSX:S) was up 30¢ at C$7.43 and First Quantum Minerals (TSX:FM) gained $2.82 to C$82.

The gold sector was ahead 0.21% as the April gold contract ran ahead $10.40 to US$1,118.90 an ounce. Centerra Gold (TSX:CG) climbed 61¢ to C$12.81.

The April crude contract on the New York Mercantile Exchange was up $1.49 at US$79.66 a barrel and the energy sector was up 0.13%. Nexen Inc. (TSX:NXY) advanced 53¢ to C$23.75, while Canadian Natural Resources (TSX:CNQ) gave back 67¢ to C$70.88.

The tech sector was weak with CGI Group (TSX:GIB.A) down 42¢ at $14.88. But Research In Motion Ltd. (TSX:RIM) gained 55¢ to $74.55.

The industrials sector was also lower. Bombardier Inc. (TSX:BBD.B) was down 18¢ or 3.07% at $5.69 after running ahead about 7% Thursday following the announcement of a US$3-billion contract to sell 40 of its new CSeries jetliners to American carrier Republic Airways Holdings Inc.

The TSX Venture Exchange climbed 13.25 points to 1,531.19.

New York markets were modestly higher with the Dow Jones industrial average up 4.23 points at 10,325.26. The Nasdaq composite index rose 4.04 points to 2,238.26 and the S&P 500 index was ahead 1.55 points at 1,104.49.

In earnings news, insurer American International Group Inc. reported a larger than expected fourth-quarter loss.

AIG lost US$8.87 billion in the fourth quarter of 2009. That was an improvement from a year earlier but weaker than analysts expected and its shares fell $2.76 to US$24.75.

In Canada, FNX Mining Co. Inc. (TSX:FNX) shares moved ahead 16¢ to C$12.57 after the company reported it had a $32.1-million profit in the fourth quarter. The profit compared with a loss of $397.4 million for the fourth quarter of 2008 when FNX reported a $500-million asset impairment charge, partly offset by a $137-million income and resource tax recovery.

FNX’s revenue rose to $108.6 million in the fourth quarter from only $48.7 million a year earlier.

Shares in Thompson Creek Metals Company Inc. (TSX:TCM) climbed 36¢ to C$14.47 after it said Thursday it earned US$26 million in its latest quarter as sales fell more than 40% due to a lower price for molybdenum. The company, which reports in U.S. dollars, said the profit amounted to 18¢ a share compared with a loss of US$23.8 million or 19¢ per share in the last three months of 2008.

@page_break@Garda World Security Corp. (TSX:GW) shares jumped 72¢ or 7.37% to $10.49 after it said it expected full-year revenue to range from $1.08 billion to $1.09 billion, which would be generally in line with analyst estimates.

First Uranium Corp. (TSX:FIU) shares dropped 28¢ or 15.47% to $1.53 as it cautioned investors that its financial condition remains “severely compromised” despite reinstatement of an environmental authorization for a future storage facility in South Africa. The Toronto-based company said it hasn’t been able, as yet, to arrange acceptable financing.

ConjuChem Biotechnologies Inc. (TSX:CJB) said late Friday afternoon that the Superior Court of Quebec has granted the company’s request for protection from creditors under the Companies’ Creditors Arrangement Act. Its shares were halted on the TSX and last traded at 10.5¢.