The Toronto stock market tumbled into the red near midday as signs of strong Canadian economic growth to start the year ran up against a negative private-sector employment report from the United States.

The S&P/TSX composite index was down 27.04 points to 12,017.17.

Statistics Canada reported real GDP advanced 0.6 per cent in January, its fifth straight monthly increase. That was slightly ahead of the bullish estimate of a 0.5 per cent increase from December, or six per cent annualized, that economists had expected.

?The Canadian economy really continues to benefit from a stronger consumer, government spending and 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 a rate increase in June.?

The Canadian dollar, which has been hovering just below parity with the American currency, was ahead 0.25 of a cent to 98.34 cents US early Wednesday.

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

TSX metals stocks led gains, up 0.6 per cent, 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 $3.06 to $58.56.

Meanwhile, Wallbridge Mining Company Ltd. (TSX:WM) says it will spin off all its copper, gold and molybdenum properties in British Columbia to a new independent company called Miocene Metals Ltd. Its shares were up 2.5 cents to 28 cents.

The gold sector was also ahead, 0.6 per cent higher, as the May gold contract increased $9.40 to $1,113.90 an ounce on the New York Mercantile Exchange.

Energy stocks lifted 0.3 per cent with the May crude contract on the NYSE ahead 29 cents to US$82.66 a barrel.

The information technology sector backed off 0.8 per cent ahead of earnings from BlackBerry-maker Research In Motion (TSX:RIM) scheduled after the closing bell. It shares were down 40 cents to $75.86.

On Wall Street, the Dow Jones industrial average dipped 36 points to 10,871. The Nasdaq composite index weakened two points to 2,408 while the S&P 500 index edged down three points to 1,170.

In the U.S., payroll company ADP says employers slashed 23,000 jobs in March, compared to economists predictions which had forecast companies would add 40,000 jobs during the month.

In corporate news, 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, narrowing losses sharply from year-earlier levels of $323.3 million or $8.83 per share. Shares lifted 1.5 cents to 48.5 cents.

A subsidiary of CVTech Group Inc. (TSX:CVT) has received a two-year contract from Hydro-Quebec, worth $21 million, to install poles and anchors for electrical distribution lines throughout the province. Share rose three cents to $1.30.

Premium Brands Holdings Corporation (TSX:PBH) is acquiring an 80 per cent interest in Duso?s Enterprises Ltd., a Vancouver-based maker of fresh pastas and sauces, from its founders in a $5.6-million cash, stock and debt transaction. Shares slipped a penny to $14.52.

Clothing maker Gildan Activewear Inc. (TSX:GIL) has bought a T-shirt factory Shahriyar Fabric Industries Ltd. near Dhaka, Bangladesh for US$15 million, and its shares rose a penny to $26.96.
Canadian National Railway Co. (TSX:CNR) says it has sold a ?key section of track? in Toronto, west of Union Station, to Ontario government-owned Metrolinx for $168 million. Shares were down 99 cents to $61.14.

On Tuesday, Athabasca Oil Sands Corp. announced plans to raise $1.35 billion in its initial public offering of 75 million shares at a price of $18 per share. The company will begin trading as early as next week.

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Toronto stock market

Tags: Athabasca Oil Sands Corp, Bangladesh, BlackBerry-maker, Canada GDP, Canadian economy, Canadian National Railway Co. (TSX:CNR), copper, CVTech Group Inc, Gildan Activewear Inc, gold, Hydro-Quebec, investment analyst, Jeffrey Bradacs, Mega Brands Inc, molybdenum properties, payroll company ADP, Premium Brands Holdings Corporation, Rising stock market, S&P, Shahriyar Fabric Industries Ltd. near Dhaka, The Toronto stock market, TSX, TSX metals stocks, Wallbridge Mining Company Ltd.

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