TORONTO, Oct 24 (Reuters) - Toronto stocks pared gains late on Thursday, finishing flat but resisting the downward pull of weak U.S. equities, as a surprisingly strong tech sector propped up the Canadian market.
The Toronto Stock Exchange's S&P/TSX composite index finished with a tiny gain of 1.69 points, or 0.03 percent, at 6,336,86.
"I think the market's searching for direction right now," said Kate Warne, Canadian markets strategist at Edward Jones. "I think we've seen a strong rally based on earnings that were better than many expected, and now everyone's questioning whether it can be sustained."
Information technology issues finished 5.48 percent higher, continuing its two-week surge on surprisingly good corporate results from companies such as Nortel Networks , Sierra Wireless Inc. , and some big-name U.S. firms.
Nortel shares jumped 26 Canadian cents, or 18.4 percent, to C$1.67, as fears the telecom equipment maker's cash reserves were drying up began to ease, and some investors rushed to cover short positions.
Celestica Inc. rose 93 Canadian cents to C$21.33, while Tundra Semiconductor Corp. advanced 70 Canadian cents to C$5.40, and Sierra Wireless closed up 30 Canadian cents at C$5.85.
Analysts said many investors were taking profits after two weeks of sharp gains, although losses were likely pared by news that Canada's leading economic indicator rose by 0.2 percent in September, beating market expectations of 0.1 percent. The indicator helps forecast Canada's economic performance.
Six of the 10 TSX subgroups finished lower during the session.
Consumer discretionary issues fell 1.19 percent, led by auto parts firms Magna International Inc. , down C$2.96 at C$87.04, and Tesma International Inc. , which slid 92 Canadian cents to C$26.03.
($1=$1.56 Canadian)