Source: The Canadian Press

The Toronto stock market stalled Wednesday after a string of solid gains as investors took in a rising level of violence as pro-government and anti-government protesters clashed in Egypt.

The S&P/TSX composite index dropped 32.33 points to 13,680.29, led by falling gold stocks, while the TSX Venture Exchange gained 22.18 points to 2,324.17.

The Canadian dollar gained against the American currency for a second day, up 0.27 of a cent at 101.19 cents US following a rise of more than one cent on Tuesday.

A flight to commodities prompted by Egyptian unrest sent the TSX up about 300 points over the previous three sessions as investors looking for safe havens bought into U.S. Treasurys and commodities such as oil.

Egypt’s upheaval took a dangerous new turn Wednesday as several thousand supporters of President Hosni Mubarak attacked anti-government protesters in Cairo in the first significant violence between supporters of the two camps in more than a week of anti-government protests.

It erupted after Mubarak went on national television the night before and rejected demands he step down immediately and said he would serve out the remaining seven months of his term.

Energy stocks were lower even as oil prices advanced amid the latest turn of events in Egypt. The March crude contract on the New York Mercantile Exchange was up nine cents at US$90.86 a barrel. Prices have ran ahead more than six per cent over the past four sessions on worries that Egyptian unrest could result in a closure of the Suez Canal.

“It tells us for a start that nobody has factored in political risk (in oil prices) for the last couple of years,” said Gavin Graham, global strategist Excel Funds Management.

“Then suddenly it’s Egypt, it’s the Suez Canal, it’s the pipeline. And what happens if other unpopular autocratic regimes in the Middle East have disturbances, what would that do if you had some of the gulf states, let alone Saudi Arabia, starting to be affected by this?”

The energy sector lost 0.42% and Imperial Oil (TSX:IMO) gained 95 cents to C$44.95 and Canadian Natural Resources (TSX:CNQ) lost 65 cents to $44.30.

Suncor Energy Inc. (TSX:SU) stock was unchanged at $44.30 after it reported fourth-quarter net earnings almost tripled from a year ago to $1.35 billion, or 87 cents per common share. That was much higher than the 51 cents a share that analysts had expected.

Suncor became Canada’s largest energy company when it merged with Petro-Canada in 2009.

Gold stocks were the major decliner with the April bullion contract down $8.20 at US$1,332.10 an ounce. Barrick Gold Corp. (TSX:ABX) fell 90 cents to C$46.94 while Goldcorp Inc. (TSX:G) was down 47 cents to US$40.32.

New Gold Inc. (TSX:NGD) shares rose nine cents to $8.27 as the miner said it sold more of the precious metal last year and hit record production levels.

Industrial stocks were also a weight as Canadian National Railways (TSX:CNR) dropped 76 cents to $67.64.

The base metals sector led advancers, up one per cent as March copper in New York was off about a third of a cent from Tuesday’s latest record high close of US$4.55 a pound. Teck Resources (TSX:TCK.B) rose $1.28 to C$63.70 while Quadra FNX Mining (TSX:QUX) gained 29 cents to $14.60.

New York markets were little changed a day after indexes moved sharply after data from the Institute for Supply Management on Tuesday showed higher than expected expansion of the U.S. manufacturing sector in January.

The Dow Jones industrial average inched up 1.81 points at 12,041.97.

The Nasdaq composite index dipped 1.03 points to 2,750.16 while the S&P 500 index was down 3.56 points at 1,304.03.

Investors also took in positive U.S. employment data as payroll company ADP reported private sector employment increased by 187,000 from December to January. While January marked the 12th consecutive month of private sector employment growth, ADP lowered December’s gains to 247,000 new jobs from a previous estimate of 297,000.

The report came two days before the release of the U.S. non-farm payrolls report for January. Economists expect it to show private sector job growth of 150,000.

In other corporate news, a study commissioned by the U.S. Department of Energy into TransCanada Corp.’s (TSX:TRP) controversial Keystone XL pipeline proposal says increased Canadian crude imports, along with reduced U.S. demand, could “essentially eliminate” reliance on Middle Eastern crude. TransCanada shares rose 35 cents to $37.22.

Toymaker Mattel said net income over the crucial holiday quarter slipped one per cent on higher costs even though revenue rose on strong sales of Barbie and Fisher-Price toys. Net income edged down to $325.2 million, or 89 cents per share, from $328.4 million, or 89 cents per share, last year. Analysts had expected 86 cents per share, according to FactSet and Mattel stock ran ahead 0.91% to US$24.37.

Whirlpool Corp., the world’s biggest appliance maker, said Wednesday its fourth-quarter profit rose 80% to US$171 million, mainly on lower costs and an income tax benefit. Sales fell in both North America and Europe, but strength in Latin America and Asia helped offset those weaknesses. However, its shares fell 2.13% to US$83.60.