Toronto stocks closed lower on Thursday as a merger in the oil patch failed to generate any enthusiasm in that sector.

The Toronto Stock Exchange 300 composite index closed down 57.80 points at 7,784.52.

Overall, 11 of the TSE 300’s 14 sub-indices closed lower, led by a 2.4% slide in the oil and gas sector and a 1.9% drop in metals and minerals.

Market momentum was negative as declining issues outpaced advancers 620 to 477. Trading was heavy as 213.6 million shares changed hands.

News that shareholders of PanCanadian Energy Corp. and Alberta Energy Co Ltd. voted in favor of a merger deal to create the world’s top independent oil exploration and production firm failed to rescue the oil patch from the drag of lower crude prices.

Alberta Energy shares closed down $2.75 at C$68.55, while PanCanadian shed $1.33 to $47.10.

Among metal stocks, Alcan Inc. fell $1.12 to $60.68.

Nortel Network, which had its debt rating cut to “junk” status by Moody’s Investors Service, fell 10¢ to $6.75.

The tech giant, which makes up nearly 4% of the TSE 300, said it did not expect Moody’s downgrade to have a major impact on its operations.

Venture capital stocks closed lower Thursday. The S&P/CDNX Composite Index closed down 4.36 at 1,174.18. Trading was active on a volume of 34.2 million shares.

In New York, Investors couldn’t settle on a direction for much of Thursday’s session, but a rally in the last hour of trading lifted the major averages to a higher close.

The Dow Jones Industrial Average finished with a gain of 36.88 points to 10,235.17. The Nasdaq added 5.40 points to 1,789.75, and the S&P 500 tacked on just under a point to 1,126.34.

The U.S. Labor Department said initial jobless claims rose to 460,000 in the week ended March 30, compared with 396,000 the previous week.

After the bell Wednesday, Dell gave some hope to the technology sector, saying that quarterly earnings were on track and revenue in the current quarter might come in a little higher than expected.

The Canadian dollar fell US0.14¢ to US62.75¢.