The Canadian Press

The Toronto stock market closed flat Thursday as energy and industrial stocks helped the TSX recover from sharp early losses linked to another round of debt troubles for Greece.

The S&P/TSX composite index closed up just 2.63 points at 12,113.53, but that represented a major recovery from early lows that saw the main index down as much as 135 points. The TSX Venture Exchange climbed 5.68 points to 1,652.86.

Greek borrowing costs spiked to a record high, decreasing confidence in trading markets that Greece will be able to pay off its debt. Such problems in Greece and other European countries could upend a global economic recovery and undermine the euro.

Commodity prices, which are priced mainly in U.S. dollars, registered sharp declines early as the greenback rose against the euro and other major currencies. However, commodities began recovering as the day progressed, bolstering the Canadian dollar, which was up 0.23 of a cent at 99.72 cents US.

Even before Thursday’s weak showing, the TSX had stalled, closing lower the previous two sessions. While the market is up a bit over 2% for the year so far, investors have not yet seen a good reason to send stock prices higher.

The TSX energy sector was ahead 0.56% even as the May crude contract on the New York Mercantile Exchange slipped 49 cents to US$85.39 a barrel. On the TSX, Suncor Energy (TSX:SU) gained 74 cents to C$35.33.

Shares in Athabasca Oil Sands Corp. (TSX:ATH) dropped $1.10 or 6.1% to $16.90 at the end of the company’s first trading session on the Toronto Stock Exchange.

Gold stocks faded as the June bullion contract on the Nymex declined 10 cents to US$1,152.90 an ounce. But Goldcorp Inc. (TSX:G) was ahead 29 cents at C$40.35.

Centerra Gold (TSX:CG) shares were down 64 cents or 5.34% to $11.35 after it said Wednesday its flagship Kumtor gold mine in Kyrgyzstan had so far been unaffected by the violence that led to the overthrow of the government in the small impoverished Central Asian country. An opposition coalition proclaimed a new interim government Thursday.

The base metals sector was slightly higher while the May copper contract in New York was off one cent at US$3.59 a pound. Equinox Minerals (TSX:EQN) rose 16 cents to C$4.28.

Blue chips also contributed to the improving showing on the TSX with the industrials sector ahead 0.56%. Canadian National Railways (TSX:CNR) gained 80 cents to $61.67.

The consumer staples sector was the leading decliner, down 2.63%. Shoppers Drug Mart (TSX:SC) fell $4.25 or 9.84% to $38.92 after it said it would have to restructure dramatically under a plan by the Ontario government to cut the price of generic medications to 25 from 50% of the equivalent brand-name drugs.

Jean Coutu Group (TSX:PJC.A), which operates the largest chain of pharmacies in neighbouring Quebec, also saw its shares plummet. The company’s stock fell 59 cents or 5.97% to $9.30.

Positive sales reports from retailers helped push New York indexes into positive territory.

Target Corp. and TJX Cos., the owner of T.J. Maxx, Marshalls and other discount stores, increased their first-quarter earnings forecasts following strong sales in March. Macy’s Inc. posted March sales that topped analysts’ expectations.

However, there was disappointment at the latest reading of first-time claims for jobless insurance.

The Dow Jones industrial average gained 29.55 points to 10,927.07 after the U.S. Labour Department said initial claims for jobless benefits jumped 18,000 to a seasonally adjusted 460,000. Economists polled by Thomson Reuters had forecast a drop to 435,000.

The Nasdaq composite index gained 5.65 points to 2,436.81 while the S&P 500 index rose 3.99 points to 1,186.44.

In other corporate news, Astral Media Inc. (TSX:ACM.A) shares lost 96 cents to $35.51 despite reporting its second-quarter profit was up 24% to $33.6 million from $27.1 million a year earlier. The radio, specialty TV and billboard company said that revenues rose 4% overall to $218.3 million, led by a 23% surge in revenue from outdoor advertising.

Shares in discount retailer Dollarama Inc. (TSX:DOL) ran ahead $1.57 to $24.28 after it said its fourth-quarter profit spiked to $34 million, more than five times higher than a year earlier.

Mountain Lake Resources Inc. (TSXV:MOA) soared 16 cents or 54.24% to 45.5 cents on the TSX Venture Exchange. Its shares earlier hit a new 52-week high of 47 cents after the Halifax-based company released drilling results from the Leprechaun gold deposit in central Newfoundland earlier Thursday.