Source: The Canadian Press

The Toronto stock market closed slightly higher Friday with investor enthusiasm held well in check by weak jobs data from both Canada and the United States.

The S&P/TSX composite index rose 25.2 points to 11,799.97 as disappointing earnings reports also weighed on the Toronto market while the TSX Venture Exchange added 6.41 points to 1,465.48.

Statistics Canada reported that the economy shed a total of 9,300 jobs last month, while the jobless rate inched up a tenth of a percentage point to 8%.

The Canadian dollar was down 1.08 cents to 97.29 cents US in the wake of the report.

The U.S. Labour Department said that 131,000 jobs were lost in the United States during July, while the jobless rate held steady at 9.5%.

“The Labour Department numbers the last two, three months show the economy has hit a soft spot,” said Michael Strauss, chief economist and market strategist at Commonfund in New York.

But analysts put the best face on the results, noting that a weak Canadian report for July was expected after a string of strong gains. And in the U.S., the results came on top of a weak second quarter where the European government debt crisis helped depress markets.

“We know the second quarter was lousy, particularly May and June as all of us as investors were kind of glued to TV sets looking at Europe,” observed Andrew Pyle, investment adviser with ScotiaMcLeod in Peterborough, Ont.

“You have to think that companies as well were looking at it and saying, ‘Well is this the month we go out and hire a whole boatload of workers if we’re seeing a potential unwinding of the situation in Europe?’ And what we saw in the report is a reflection of that, I think.”

The gold sector was the strongest gainer as bullion prices picked up following the release of the jobs data. The December bullion contract on the Nymex ahead $6 to US$1,205.30 an ounce. Barrick Gold Corp. (TSX:ABX) gained $1.20 to C$44.65 while Goldcorp Inc. (TSX:G) advanced 95 cents to $41.61.

Manitoba Telecom Services Inc. (TSX:MBT) fell $2.34 or 8.57% to $24.98 after cutting its quarterly dividend by about a third to 42.5 cents Friday and scaled back its financial projections this year. Manitoba Tel said its net profits fell to $28.2 million or 44 cents a share for the three months ended June 30 from $30.1 million or 47 a year ago.

The company also revised its 2010 revenue and earnings projections downward.

Elsewhere, Rogers Media Inc. (TSX:RCI.B) has struck a friendly deal to acquire Montreal-based Internet advertising company BV! Media Inc. (TSXV:BVM) for $25 million in cash.

Rogers shares declined 26 cents to $36 while BV shares soared 23 cents or 139% to 39.5 cents.

Financials also weighed on the TSX, with Manulife Financial the biggest loser, shedding another 17 cents or 1.2% to $14.03 on a heavy volume of million shares on top of Thursday’s slide of 11% after the insurer posted a $2.4-billion loss for the last quarter.

The TSX energy sector fell 0.42% as oil prices slipped for a third consecutive day after data showed rising gasoline inventories in the United States. The September crude contract on the New York Mercantile Exchange was off $1.31 to US$80.70 a barrel. Imperial Oil (TSX:IMO) gave back 17 cents to $40.15.

The base metals sector was little changed while the September copper contract in New York gave up early advances and was down one cent at US$3.34 a pound. Thompson Creek Metals (TSX:TCM) gained 59 cents to $10.09 after reporting Thursday that it earned US$126.5 million in its latest quarter as revenue doubled compared with a year ago.

First Quantum Minerals (TSX:FM) fell $1.29 to $64.96.

The jobs data kept Wall Street in the red with the Dow Jones industrial average down 21.42 points to 10,653.56.

The Nasdaq composite index lost 4.59 points to 2,288.47 while the S&P 500 index was down 4.17 points to 1,121.64

In other earnings news, Magna International (TSX:MG.A) shares jumped $5.64 or 7.45% to $81.37 as the company announced it is raising its quarterly dividend by two-thirds to 30 cents a share. The auto parts giant reported a second quarter profit of $293 million.

Brookfield Asset Management Inc. (TSX:BAM.A) made a US$89-million profit in the second quarter, erasing last year’s loss of $342 million in the same period. Its shares lost 12 cents to $26.40.

The TSX ended the week up 86.54 points or 0.73% while the Dow industrials gained 187.62 points or 1.79% despite the poor jobs report on strong earnings reports and economic data showing continued expansion in the manufacturing and service sectors.