The Canadian Press

The Toronto stock market closed slightly lower Wednesday as a report showing weakness in the U.S. jobs market overshadowed further signs of economic growth in Canada.

The S&P/TSX composite index was down 6.48 points to 12,037.73 in the final trading session of the first quarter. The TSX Venture Exchange rose 6.17 points to 1,576.55.

Statistics Canada reported Wednesday that real growth domestic product advanced 0.6% in January, its fifth straight monthly increase and slightly ahead of economists’ already bullish estimate of a 0.5%. However, this was offset by a worse-than-expected employment report south of the border.

“The Canadian economy really continues to benefit from a stronger consumer (and) government spending and a strong construction sector,” said Jeffrey Bradacs, senior investment analyst at MFC.

“GDP growth for the first quarter continues to outpace the Bank of Canada’s forecast, and that increases the likelihood of an interest rate increase in June.”

The Canadian dollar, which has been hovering just below parity with the American currency, ended ahead 0.35 of a cent at 98.44 cents US Wednesday.

A separate report from Statistics Canada showed that total hours worked by payroll employees increased by 0.3% in January while non-farm payroll employment was virtually unchanged.

The TSX information technology sector backed off 0.9% ahead of earnings from BlackBerry-maker Research In Motion (TSX:RIM) that were released after the closing bell. Its shares were down $1.01 at $75.25.

Metals stocks were up 0.1% on a flurry of activity in the sector. Inmet Mining Corp. (TSX:IMN) has arranged a $500-million equity financing through Ellington Investments Pte. Ltd., a subsidiary of a Singapore-based investment company with holdings in Asia and Latin America. Shares rose 6.3%, or $3.51, to $59.01.

Meanwhile, Wallbridge Mining Co. Ltd. (TSX:WM) says it will spin off all its copper, gold and molybdenum properties in British Columbia to create a new independent company called Miocene Metals Ltd. Its shares were up one cent at 26.5 cents.

The gold sector was also ahead, up 0.4%, as the May gold contract increased $8.80 to close at US$1,114.50 an ounce on the New York Mercantile Exchange. The May copper contract lost 1.5 cents to US$3.56 a pound.

Energy stocks lifted 0.6%, with the May crude contract on the Nymex ending $1.39 higher at US$83.76 a barrel, on both a weaker U.S. dollar and higher inventories.

The U.S. Energy Information Administration reported crude inventories rose by 2.9 million barrels to 354.2 million the week ended March 26. Total inventories were 2.6% below year-ago levels, but the increase was above the 2.65-million-barrels analysts had expected.

Financials stocks fell 0.3%, with Royal Bank (TSX:RY) down 31 cents at $59.44.

On Wall Street, the Dow Jones industrial average dipped 50.79 points to 10,856.63. The Nasdaq composite index fell 12.73 points to 2,397.96 while the S&P 500 index was down 3.84 at 1,169.43.

In the U.S., payroll company ADP said private-sector employers slashed 23,000 jobs in March, a reversal of predictions by economists, who had forecast companies would add 40,000 jobs.

The ADP report is seen as an early indicator of the U.S. Labour Department’s closely watched monthly employment report, which is due out Friday. However, there can be wide variations because ADP only accounts for private-sector jobs.

Economists expect the government report — which includes a wider range of employment — to show 190,000 jobs were added in March. It would be only the second monthly increase in jobs since the recession began in late 2007. However, the number could be somewhat inflated because many temporary workers were hired to conduct the 2010 census.

Employment growth is considered vital to a strong recovery in the U.S. because it will give consumers more confidence to go out and spend money, the biggest driver of economic activity in the country.

The ADP report also outshone data from the U.S. Commerce Department showing that factory orders rose 0.6% last month, less than January’s upwardly revised gain of 2.5%. Analysts polled by Thomson Reuters had forecast an increase of 0.5%.

In corporate news, Transat AT (TSX:TRZ.A) shares jumped 14.1% after chartered airline Skyservice announced it was shutting down. Transat is one of the company’s competitors and is expected to pick up some of Skyservice’s cancelled flights. Its shares rose $1.73 to $13.99.

And toy maker Mega Brands Inc. (TSX:MB) says an uptick in fourth-quarter sales allowed it to drastically trim losses to US$22.1 million or 60 cents per share in the period, sharply down from a year-earlier loss of $323.3 million or $8.83 per share. Its shares fell 1.5 cents to 48.5 cents.