Canada Stocks: TSX adds to weekly decline as economy sheds jobs

Saputo

09/06/2023 21:34

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      TSX ends down 0.3% at 19,892.06
    

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      Canada sheds 17,300 jobs in May
    

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      Saputo shares fall 11.2%
    

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      Industrials lose 1% 
    

  
 (Updates throughout at market close)
    By Johann M  Cherian and Fergal Smith
       June 9 (Reuters) - Canada's main stock index fell on
Friday, adding to its weekly decline, as shares of food
processing company Saputo tumbled and domestic data showed the
economy unexpectedly losing jobs in May.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended down 50.64 points, or 0.3%, at 19,892.06, its
third straight day of declines. For the week, it was down 0.7%.
    Canada shed 17,300 jobs in May and the unemployment rate
rose for the first time in nine months. The average hourly wage
for permanent employees - a figure the Bank of Canada watches
closely - was up 5.1% year-over-year.
    "Today's report suggests stagflation may be taking hold,"
said Colin Cieszynski, chief market strategist at SIA Wealth
Management. "Wage inflation remaining stubbornly high and sticky
supports the BoC's surprise decision to raise interest rates."
    On Wednesday, the Canadian central bank surprised some
investors as it lifted its benchmark interest rate for the first
time since January to a 22-year high of 4.75%.
    Shares of Saputo Inc  SAP.TO  fell 11.2% on Friday after the
food processing firm said it expects its international division
to be negatively impacted by lower product prices in the coming
year.
    Saputo's decline weighed on the consumer staples sector. It
fell 1.4% and industrials lost 1%, while the materials sector
was down 0.9% as gold  XAU=  and copper prices fell.
    Oil  Clc1  also fell, settling 1.6% lower at $70.17 a
barrel. Still, energy was one of the sectors to gain ground,
rising 0.2%.
    Technology added 1.1%, clawing back some of its declines
over the previous two days.

 (Reporting by Fergal Smith in Toronto, and Johann M Cherian and
Shubham Batra in Bengaluru; Editing by Diane Craft)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446;))