Mar. 25, 2009 (Baystreet.ca) --

04:33 pm EST Stock markets in Toronto turned lower Wednesday afternoon as financial shares gave up early strength and energy issues backed off in the face of sliding oil prices.

The S&P/TSX Composite Index lost momentum as the afternoon wore on, and lost 38.59 to end the day at 8,810.80

The TSX energy sector was off, as New U.S. inventory figures showed crude supplies rose by 3.3 million barrels last week, about twice the amount expected. EnCana Corp. gave back $1.18 to $53.32 and Petro-Canada declined 36 cents to $33.65.

Financials were under pressure as Britain experienced its first incomplete auction of government bonds in almost seven years. The treasury attracted bids for only 1.63 billion pounds of a 1.75-billion-pound issue of 40-year gilts.

The Toronto financial sector lost as CIBC fell $1.75 to $46.31 and National Bank was down $1.12 at $41.85.

AGF Management Ltd. dropped 23 cents to $8.06 after its first-quarter profit fell 80% from a year earlier to $12.2 million.

The TSX base-metals sector moved ahead, as Teck Cominco Ltd. added 47 cents to $7.25. HudBay Minerals declined 12 cents to $5.88.

The Toronto gold sector rose, as Barrick Gold Corp. was up $1.42 to $40.94; Goldcorp Inc. lost $1.49 to $42.86.

A Hong Kong-based company controlled by China National Nuclear Corp. is offering $31 million in cash in a friendly offer for Western Prospector Group Ltd.. Western shares soared 17 cents or 46% to 54 cents.

Among TSX industrials, Magna International rose 16 cents to $34.17 after U.S. Sen. Charles Schumer said the company has agreed to discuss a last-minute aid package that could keep Magna from closing its New Process Gear plant in upstate New York.

CGI Group Inc. rose 12 cents to $9.87 after winning a 10-year, $182-million contract to manage information technology for the Foresters life insurance organization.

The Canadian dollar nipped ahead 0.04 cents to 81.26 cents U.S.

ON BAYSTREET

Of the 13 TSX subgroups, winners nosed out losers seven to six, led by gold, up 2.6%, materials, ahead 1.4%, and metals and mining, up 1.3%.

Utilities had the biggest tumble of the losers, off 2.4%; financials were down 2.1% while industrials moved 1.7% lower.

The TSX Venture Exchange increased 24.56 points to 948.85, while the Nasdaq Canada Index fell 10.57 to 447.42.

ON WALLSTREET

U.S. stocks gained Wednesday, mustering up a late-session rally after a choppy session that helped push the S&P 500's two-week gains to 20%.

The Dow Jones Industrials average found itself in negative country during much of the afternoon, before retracing its steps and gaining 89.84 points for a close of 7,749.81. The S&P 500 index strapped on 7.76 points to 813.88, while the Nasdaq added 12.43 points to 1,528.95.

Stocks have bounced 20% since March 9th, when the Dow and S&P 500 hit roughly 12-year lows.

Equities have been rallying on optimism that the economy and financial markets are getting closer to stabilizing. In addition, many stocks have been hammered so heavily as to make them attractive to investors again.

But analysts say that advance has been losing steam, particularly after Monday's spike of roughly 7% for the major stock gauges.

Financials were in play south of the border as well. Bank of America, JPMorgan Chase and Wells Fargo managed to end higher after a shaky afternoon. Citigroup cut losses.

In a primetime news conference Tuesday, U.S. President Obama said there would be no "quick fixes" for the recession and that it would take time for the economy to recover.

But he also insisted his administration has a strategy in place to "attack this crisis on all fronts."

Economically speaking, the U.S. Commerce Department reported that orders to U.S. factories for big-ticket goods rose 3.4% last month, much better than the 2% drop that had been expected. It was the first advance since July and the strongest one-month gain in 14 months.

The Commerce Department also said new-home sales rose 4.7% in February.

Treasury prices dipped, raising the yield on the benchmark 10-year note to 2.76% from 2.70% Tuesday. Treasury prices and yields move in opposite directions.

U.S. light crude oil for May delivery fell $1.21 to settle at $52.77 U.S. a barrel.

COMEX gold for May delivery rose $12 to settle at $936.70 U.S. an ounce.