(RTTNews) - Canadian stocks closed nominally higher on Thursday after giving back most of its daily gains with a sell-off in the final two hours. The markets briefly moved lower in the final hour before a modest recovery.

The S&P/TSX Composite Index added 9.4 points or 0.1% to end at 8,185.35. Toronto’s main index had plunged to a 2 1/2-month closing low in the previous session.

Energy stocks jumped 3.25% as crude oil climbed close to the $40 a barrel mark on an unexpected drop in weekly inventories.

Light sweet crude rallied $4.53 to $39.15 per barrel after EIA data crude oil inventories decreased 138,000 barrels in the week ended Feb. 13. Experts are looking for an increase of about 3 million barrels.

Suncor (SU.TO) surged 7.9%, Canadian Oil Sands (COS.UN.TO) jumped 5.8% and Baytex (BTE.UN.TO) added 3.6%.

Mining stocks are up 1.75%. First Quantum (FM.TO) added 5% to lead the way

Silver mining company Silver Wheaton Corp. (SLW.TO) dropped 8.7% after the company reported a net loss for the fourth quarter compared to a profit in the year-ago period, hurt by write-down of long-term investments and a 43% drop in sales. For fiscal year 2009, the company forecasts higher silver sales compared to the preceding year.

On the downside, gold stocks dropped 4.8% and materials stocks lost 2.9%. Traders mulled over a pair of disappointing earnings reports from major companies.

Kinross Gold Corp. (K.TO) lost 6.4% after reporting quarterly earnings that fell short of analysts’ expectations. The company’s adjusted fourth quarter earnings were $56.8 million or $0.09 per share, compared to $40.9 million or $0.07 per share a year ago. Analysts expected the company to earn $0.12 per share.

Agnico-Eagle Mines (AEM.TO) dropped 2.9% after the company reported net income for the fourth quarter of US$21.9 million or US$0.15 per share, down from US$65.2 million or US$0.46 per share in the prior year period.

In other corporate news, QLT (QLT.TO) dropped 4% after the company reported fourth-quarter net income of US$5.9 million or US$0.08 per share, compared to a loss of US$46.5 million or US$0.62 per share in the same quarter last year.

Rona (RON.TO) surged 7% after the company announced adjusted net earnings for the current quarter were C$26.3 million or C$0.23 per share.

TransAlta Corp. (TA.TO) rallied 2.8% after Credit Suisse backed its Outperform rating for the stock.

Magna Entertainment Corp. (MEC-A.TO) plunged 24.2% after the horse racetrack operator said that its controlling shareholder, MI Developments, has informed that it will not be proceeding with its reorganization proposal. However, the company said it is in discussions with MID concerning alternatives to the reorganization proposal.

President Barack Obama traveled to Ottawa today to meet with Prime Minister Stephen Harper. Talks are expected to include the fiancial crisis and energy.

On the economic front, Statistics Canada data showed the rate of decline of Canada’s composite index accelerated from 0.5% in December to 0.8% in January. This was the largest and most widespread decrease since the index turned down in September. Among the 10 components, 6 fell, 1 was unchanged and 3 increased.

South of the border, the Dow Jones Industrial average closed at its lowest level since 2002.

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Posted in Categories: Canada, Releases, Stocks, USA.

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