Source: The Canadian Press

The Toronto stock market closed slightly higher Wednesday as persistent concerns over interest rates and Greece’s debt tempered a rally in the gold sector and several bright earnings reports.

The S&P/TSX composite index gained 21.03 points to 12,134.56, its third small increase this week.

A slew of better-than-expected quarterly reports out of Canada and the United States, along with an upbeat economic outlook from the Bank of Canada, have been offset by uncertainty about banking regulations, concerns that interest rates could soon be headed higher and fears that Greece will be forced to default on its debt as its borrowing costs skyrocket.

Plus, investors had already priced in a strong first quarter for most companies, meaning the market isn’t impressed when expectations are met, said Sid Mokhtari, market technician at CIBC World Markets.

“We’re seeing the earnings reports coming in, basically justifying or confirming what the market participants were pricing in for them,” Mokhtari said.

“The market in general is still constructive, but I think the hesitancy we’re seeing in the market is very well justifiable, given the fact that we’ve had a 70 to 80% run (off the lows),” he added. “We’ll probably go into a stall for some time here.”

Encana Corp. (TSX:ECA), Canada’s largest natural gas producer, said Wednesday its first-quarter net profit soared to US$1.48 billion, three times higher than it was a year earlier as the accounting impact of its hedging program more than offset lower market prices for natural gas. Shares in Encana lost three cents to C$31.74.

And Canada’s biggest base metals miner, Teck Resources Ltd. (TSX:TCK.B), earned $937 million in its latest quarter, up sharply from a year ago due to higher commodity prices. The company also said it will make a final debt repayment on the $9.8-billion loan it took in 2008 to acquire Fording Coal Trust. Teck’s stock was unchanged at $41.71.

Meanwhile, the Canadian dollar slipped after posting its biggest one-day gain in nine months on Tuesday. The loonie fell 0.04 cent to 100.08 cents US.

The Toronto gold sector added 1.22% as the June bullion contract climbed $9.60 to US$1,148.80 an ounce. Barrick Gold Corp. (TSX:ABX) shares gained 46 cents to C$39.49.

The June crude contract on the Nymex lost 17 cents to US$83.68 a barrel after the U.S. government said oil and gas supplies have grown more than expected. The Toronto energy sector fell 0.24%.

The base metals sector lost 0.5% as the May copper contract on the Nymex added 2.15 cents to US$3.54 per pound.

And the financial sector gained 0.33% after federal Finance Minister Jim Flaherty said there is no way Canada will co-operate with attempts to impose a global tax on banks. The International Monetary Fund recommended that all G20 countries slap a tax on financial institutions to make them pay for their own bailouts. Shares in Scotiabank (TSX:BNS) added 26 cents to $52.18.

The TSX Venture Exchange fell 4.70 points to 1,647.50.

In New York, the tech-heavy Nasdaq added 4.30 points to 2,504.61 amid better-than-expected earnings from Apple Inc. (Nasdaq:AAPL). The Dow Jones industrial average gained 7.86 points to 11,124.92, while the S&P 500 slid 1.23 points to 1,205.94.

In corporate news, Montreal-based Metro Inc. (TSX:MRU.A) earned a better-than-expected $80.3 million in its second quarter. Shares in Metro gained 23 cents to $42.02.

Cequence Energy Ltd. (TSX:CQE), a junior Calgary oil and gas company, has struck a friendly deal to buy privately owned Peloton Exploration Corp. for $36.6 million in shares and debt. Cequence shares gained nine cents or nearly 4% to $2.53.

North American Palladium Ltd. (TSX:PDL) announced plans to acquire the Vezza gold project in the Abitibi region of Quebec from Agnico-Eagle Mines Ltd. (TSX:AEM) for $10 million in cash and shares. The palladium miner’s stock fell 29 cents or nearly 6% to $4.93 after the company said it would increase a share offering by 2.4 million to 17.4 million units. Agnico-Eagle’s shares climbed $1.06 to $60.31.

And General Motors CEO Ed Whitacre announced that the automaker has repaid all its loans to governments in the United States and Canada five years ahead of schedule, while Chrysler Group LLC said cost cuts, manufacturing efficiency and disciplined pricing helped the Italian-run automaker slash its net loss to US$197 million in the first quarter.