Investors enthusiasm generated from positive economic reports in Canada and the United States evaporated as the session drew to a close on Thursday.

The Toronto Stock Exchange 300 composite index closed down 9.39 points at 7,637.50.

Overall, six of the TSE 300’s 14 sub-indexes closed lower as the tech-heavy industrial products sector closed down 1.6%.

Market momentum was positive, however, as 598 issues advanced, 496 declined and another 214 remained unchanged. Volume was 176 million shares

Markets on both sides of the border posted early gains as economic data from both Canada and the United States showed the two economies rebounding more strongly than expected.

Statistics Canada reported the domestic economy turned in modest growth of 1.5% in 2001, well below the 4.4 percent rate in 2000, but managing to avoid recession.

U.S. data showed a 1.4% rise in fourth-quarter gross domestic product. The figure was well above forecasts for a gain of 0.8%.

But the good news on the economic front, was outweighed by bad news in the technology sector. Tech issues were hit by a report released on Wednesday that showed sales of microchip-making gear tumbled 41% last year, posting a bigger drop than preliminary statistics in December had signaled.

Celestica fell $4.77 to $52.68, while tech bellwether Nortel Networks slipped 20¢ at $8.05.

The banks helped cushion Toronto stocks from falling further as Canadian Imperial Bank of Commerce came in with a first-quarter profit that topped analyst expectations.

CIBC closed up $1.97 at $52.30, while Bank of Nova Scotia was up 44¢ at $49.53.

National Bank had its best-ever first-quarter profit of $146 million, up $4 million from a year ago. It also raised its dividend and its shares gained 19 cents to $30.19.

Laurentian Bank said its first quarter earnings were $24.9 million, or 90¢ a share, up from $22.6 million, or 84¢, a year earlier.

National closed up 19¢ at $30.19, while Laurentian slipped 15¢ to $34.50.

The S&P/CDNX Composite Index closed up 6.24 at 1117.98. Trading was heavy on a volume of 44.7 million shares, with 225 advances, 222 declines and 638 issues unchanged.

In New York, blue-chips couldn’t hold their gains Thursday, despite positive economic news and solid profit reports from the retail sector, and tech stocks closed lower after being pressured by weakness in the chip sector.

The Dow Jones industrial average finished with a loss of 21.45 points to 10,106.13. The Nasdaq composite fell 20.36 points to 1,731.52, and the S&P 500 fell 3.16 points to 1,106.73.

The Canadian dollar moved up 0.29¢ to US62.42¢.