The Canadian Press

The Toronto stock market drifted to a lower finish Thursday even as oil hit a one-year high amid disappointment with earnings reports from two U.S. banking giants.

The S&P/TSX composite index declined 28.27 points to 11,504.51, while the TSX Venture Exchange fell 8.3 points to 1,328.4.

The loonie fell 0.81 of a cent to US96.67¢ after a weak U.S. dollar sent the loonie up a full cent on Wednesday.

The energy sector in Toronto ticked 0.43% higher as the November crude contract on the New York Mercantile Exchange rose US$2.40 to US$77.58 a barrel.

Oil prices took off after the U.S. Department of Energy reported that crude inventories rose by 400,000 barrels last week but gasoline levels dropped by 5.2 million barrels at a time when most energy experts expected supplies to grow yet again. Canadian Natural Resources (TSX:CNQ) advanced $1.09 to $78.58.

However the gold sector fell 1.68% as the December bullion contract on the Nymex eased US$14.10 to US$1,050.60. Barrick Gold Corp. (TSX:K) lost 83¢ to $40.15.

In New York, Goldman Sachs reported a third-quarter profit of US$3.19 billion, or US$5.25 per share, beating analyst estimates.

However, investors were disappointed as revenue from the investment bank’s mergers and acquisitions operations dipped sharply from the previous quarter, reflecting the general slowness in takeover activity, and its shares lost US$3.65 to US$188.63.

“It was interesting with Goldman (with) people sort of focusing on their M&A work because I actually think the M&A cycle is something that is probably going to persist,” said Norman Raschkowan, chief investment officer at Mackenzie Financial Corp.

“But I think the financials have gotten ahead of themselves, in the U.S. in particular in that they still have a tough road — especially those that have exposure to commercial real estate.”

Citigroup reported a slightly smaller loss per share than expected but said its credit losses remain high. Its shares fell 25¢ to US$4.75.

The Dow Jones industrials gained 47.08 points to 10,062.94. The Nasdaq composite index added 1.06 points to 2,173.29, while the S&P 500 index moved ahead 4.54 points to 1,096.56.

On the economic front, Statistics Canada reported that declines in the aerospace and vehicle manufacturing segments were largely responsible for a 2.1% drop in manufacturing sales in August. The dip followed a 5.2% gain in July.

Production in the aerospace product and parts industry fell 35.6% while manufacturing sales in the motor vehicle industry fell 6.3% during August.

Elsewhere on the TSX, the base metals sector lost one per cent as December copper climbed 1.45¢ to US$2.859 a pound. Teck Resources (TSX:TCK.B) was off 68¢ to $33.65.

In other corporate news, Pottruff & Smith Travel Insurance Brokers Inc., one of the largest travel insurance brokers and third-party administrators in Canada, has been acquired by Manulife Financial Corp. (TSX:MFC). Terms of the deal were not disclosed and Manulife shares declined 27¢ to $22.21.

Canwest Global Communications Corp. said it has been notified by the Toronto Stock Exchange that its subordinate voting shares (TSX:CGS) and non-voting shares (TSX:CGS.A) will be delisted at the close of trading Nov. 13 because of failure to meet listing requirements. The media conglomerate’s stock was halted Oct. 5 when it filed for creditor protection under a mountain of debt.

Funeral home operator Keystone North America Inc. (TSX:KNA.TO) has agreed to be taken over by U.S.-based Service Corporation International for $208 million. Its shares surged $1.31, or 20.3%, to $7.76.

Units in Bell Aliant (TSX:BA.UN) lost 33¢ to $27.32 after Atlantic Canada’s main phone company said it is closing nearly a dozen call centres in the region next April. The total number of people affected wasn’t disclosed but the company said its 16 customer call centres range in size from four employees to 400 and employ about 1,400 jobs in total.