June 9 (Reuters) – Canada’s main stock index fell on Friday, adding to its weekly decline, as shares of food processor Saputo fell and showed the economy unexpectedly lost jobs in May.
The Toronto Stock Exchange’s S&P/TSX composite ( .GSPTSE ) fell 50.64 points, or 0.3%, to end at 19,892.06. On 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. Average hourly wages for permanent employees — a figure the Bank of Canada watches closely — rose 5.1% year over year.
„Today’s report suggests stagnation is taking over,” said Colin Ciesinski, chief market strategist at SIA Wealth Management. „Wage inflation remains stubbornly high and sticky, supporting the BoC’s surprise decision to raise interest rates.”
On Wednesday, the Canadian central bank surprised some investors by raising its key interest rate to 4.75% in 22 years for the first time since January.
Shares of Saputo Inc ( SAP.TO ) fell 11.2% on Friday after the food processor said it expects its international division to be negatively impacted by lower product prices in the coming year.
Saputo’s decline hit the consumer staples sector. It fell 1.4% and industrials lost 1%, while the commodities sector fell 0.9% as gold and copper prices fell.
Oil also fell, falling 1.6% to $70.17 a barrel. However, energy was one of the sectors gaining ground, rising 0.2%.
The tech added 1.1%, reversing some of its declines over the previous two days.
Reporting by Fergal Smith in Toronto and Johan M Cherian and Shubham Patra in Bangalore; Editing by Diane Croft
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