Source: The Canadian Press

The Toronto stock market capped a positive month by closing little changed Thursday as higher energy stocks were balanced by weakness in gold companies.

The S&P/TSX composite index dropped 14.17 points to 12,368.65 as investors also took in data from Statistics Canada that gross domestic product shrank in July, the first monthly decline since August 2009. However, the 0.1% dip had been widely expected.

A weaker U.S. dollar helped take the Canadian dollar up 0.47 of a cent to 97.18 cents US.

The TSX Venture Exchange was off 4.88 points at 1,708.26.

The gold sector was the weakest group as the December gold contract on the New York Mercantile Exchange dipped 70 cents from Wednesday’s latest record close to US$1,309.60 an ounce. Barrick Gold Corp. (TSX:ABX) faded $1.02 to C$47.55 and Goldcorp Inc. (TSX:G) lost 85 cents to C$44.70.

The TSX energy sector was the only major advancer, up just over 1% as the November crude contract on the Nymex moved ahead $2.11 to US$79.97 a barrel. That added to Wednesday’s gain after the U.S. Energy Information Administration said crude oil inventories declined by 500,000 barrels last week against an expected rise of 2.2 million barrels. Suncor Energy (TSX:SU) was up 31 cents at C$33.50.

September has the reputation of the worst trading month of the year. But mostly positive readings from economic data on U.S. manufacturing, home sales and jobs have helped push stocks higher this September after a dismal performance in August.

“There’s been enough indicators to convince the investors now that a double-dip recession is not on the table — it’s more a slow-growth grinding out scenario,” said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier.

That “means earnings will continue to increase but (are) not going to be gangbusters. I think October could be a tough month because September has been so good.”

The Dow Jones industrial average had its best September since 1939 with a gain of 7.7%. The TSX gained a more modest 3.8% for the month, but is up 5.3% for the year. The Dow has climbed about 3.5% in the year to date.

Investors were pleased with a U.S. Commerce Department report that the country’s economic growth was a bit better than expected in the second quarter while first-time claims for unemployment benefits dropped more than expected.

Also, a reading on regional manufacturing in the Chicago area jumped in September. Economists had expected the Chicago Purchasing Managers Index to fall slightly.

But U.S. markets closed negative as investors pocketed profits from the best September in more than seven decades.

The Dow Jones industrials lost 47.23 points to 10,788.05.

The Nasdaq composite index was down 7.94 points to 2,368.62 while the S&P 500 futures shed 3.53 points to 1,141.2.

Also overhanging markets were government debt worries after Ireland announced it would sink billions into its failed banks while Spain’s public debt rating was downgraded.

Ireland said it would put euro3 billion (US$4.1 billion) more into Allied Irish and take majority control. Along with other bailouts, that would push the public deficit above 30% of annual economic output, a postwar record in Europe.

Moody’s Investor Services cut Spain’s public debt rating, a move many in the markets had expected but which confirmed that Europe will likely be slow to emerge from its debt crisis.

In corporate news, shares in Beaufield Resources Inc. (TSXV:BFD) soared 48 cents or 240% to 68 cents on very heavy volume of 41.7 million shares after reporting “excellent” results from exploratory drilling on its 100% owned Tortigny copper-zinc-silver deposit in Quebec.

Shares in satellite designer and manufacturer Com Dev International (TSX:CDV) jumped 22 cents or 10.48% to $2.32 after a Spanish company invested $15 million in the company’s data services subsidiary, exactEarth. HISDESAT Servicios Estrategicos S.A., a Madrid-based satellite operator and service provider, has bought a 27% interest in exactEarth.

American insurer AIG has reached a deal to repay billions of dollars it received during the credit crisis in late 2008. American International Group Inc. received a bailout package worth as much as US$180 billion from Washington, which got an 80% stake in the company in return. The U.S. Treasury Department will swap preferred shares it currently holds in AIG for common stock and then sell those shares over time. AIG shares were up $1.62 at US$39.07.

Heavy-equipment maker Caterpillar said it will raise prices up to 2% worldwide starting in January. The company said Thursday the price increase was due to “industry factors” and the economy and its shares fell $1.31 to US$78.68.

Vancouver-based Caterpillar dealer Finning International (TSX:FTT) shed 33 cents to C$23.92.