Source: The Canadian Press

The Toronto stock market closed modestly higher Friday, wrapping up the first half of 2010 trading on a positive note as buyers looked past data showing that Canadian economic growth faltered in April while U.S. job growth was also a big disappointment.

The S&P/TSX composite index moved up 30.59 points to 11,294.42, while the TSX Venture Exchange added 6.15 points to 1,415.89.

The Canadian dollar was down 0.83 of a cent at 93.93 cents US after Statistics Canada reported that real gross domestic product was unchanged in April after seven consecutive monthly increases.

However, analysts were quick to point out that the flat GDP showing for the Canadian economy in April doesn’t mean the Canadian recovery is in trouble.

“The strong momentum late in the first quarter resulted in real GDP being up at a 1.8% annualized rate in April relative to the average level in the first quarter,” said RBC assistant chief economist Dawn Desjardins.

“This followed 6.1% and 4.9% annualized gains in output in the first and fourth quarters respectively.”

She added that growth likely resumed in May and June.

There was also disappointing employment news south of the border two days before the release of the U.S. June non-farm payrolls report.

The widely-watched jobs report from payrolls company ADP said that private sector payrolls expanded by only 13,000 during June, compared with expectations of about 60,000 by economists.

Hopes have been modest ahead of Friday’s U.S. government report. Overall, economists are expecting a drop of about 200,000 jobs, largely because the government terminated many temporary positions created for the U.S. census. For the private sector alone, they had expected creation of about 50,000 jobs in June.

Investors sought defensive stocks during the afternoon with the utilities sector rising 0.9%. Fortis Inc. (TSX:FTS) advanced 20 cents to $27.18.

The Consumer Staples sector was up 1.09% as grocer Loblaw Cos. (TSX:L) advanced 68 cents to $38.61.

Financials also provided support on positive news from Europe. The European Central Bank said it will lend US$161 billion to banks for three months, which is a smaller than expected sum that suggests banks’ cash needs are easing despite lingering worries about the eurozone debt crisis.

Bank of Montreal (TSX:BMO) was ahead 39 cents to $57.74 and TD Bank (TSX:TD) climbed 39 cents to $68.98.

The energy sector was little changed as the August crude contract on the New York Mercantile Exchange dipped 31 cents to US$75.63 a barrel following a report showing a larger than expected drop in U.S. crude supplies. Canadian Natural Resources (TSX:CNQ) advanced 28 cents to C$35.33.

Gold stocks advanced as the August bullion contract in New York was ahead $3.50 at US$1,245.90 an ounce. Barrick Gold Corp. (TSX:ABX) rose 88 cents to C$48.32.

The TSX base metals sector was the biggest decliner, even as the September copper contract on the Nymex climbed two cents to US$2.95 a pound after dropping 16 cents Tuesday. Equinox Minerals (TSX:EQN) lost nine cents to C$3.73 while Quadra FNX Mining (TSX:QUX) fell 34 cents to C$9.79.

The main TSX index is down about 3.8% year to date and almost 8% from its April highs amid deepening conviction that the global economic rebound is falling short of the expectations that sent markets surging in 2009.

“And from our point of view, there’s not much to get excited about in the second half of the year,” said Luciano Orengo, portfolio manager at MFC Global Investment Management.

“You’re getting a rerating in the market to adjust valuations to a different growth scenario than we had initially at the beginning of the year. The data is just not coming in as expected, so you have to revise your growth expectations down.”

New York’s Dow Jones industrial average fell 96.28 points to 9,774.02. The blue chip index is now 6.27% below where it started the year.

The Nasdaq composite index lost 25.94 points to 2,109.24 while the S&P 500 index edged 10.53 points lower to 1,030.71 .

The TSX will be closed Thursday for the Canada Day holiday.

In corporate news, Shaw Communications Inc. (TSX:SJR.B) reported third-quarter net income rose to $158 million, or 37 cents per share, compared to $132 million, or 31 cents a share, a year ago. Revenue increased 10% to $944 million. Shaw also expects the acquisition of Canwest Global Communications Corp.’s broadcasting division will be delayed until early 2011 and its shares were up four cents to $19.17.

Maple Leaf Foods Inc. says it has adopted a shareholder rights plan, sometimes referred to as a poison pill defence, to thwart any potential hostile takeover of the big Canadian food processor. It said the plan would be triggered if an unwanted suitor sought to acquire 20% or more of the company but added that the plan “was not adopted in response to an actual or anticipated transaction.” Maple Leaf shares climbed three cents to $8.97.

West 49 Inc. (TSX:WXX), the youth-oriented Canadian clothing and sporting goods retailer, has agreed to be acquired by Billabong International Ltd. for about $83 million. West 49 shares jumped 73 cents, or 132.7%, to $1.28.

Daylight Energy Ltd. (TSX:DAY) says it has struck a deal to sell some of its non-core eastern Alberta oil and natural gas assets to private company Gear Energy Ltd. for $125 million — $100 million in cash and $25 million in equity. Daylight shares dipped six cents to $8.93.