Canadian shares extended losses for a sixth day on Friday as materials prices slumped after jobs data from Canada and the U.S. crushed estimates.
The resource-heavy Standard & Poor’s/TSX Composite Index (TSE:OSPTX) slid 0.2 percent to 12,380.00 at 1:15 p.m. in Toronto on Friday. The 237-member benchmark gauge has lost 2.8 percent in the past six sessions.
The materials sub-index, which includes mining shares and which is the main index's third most heavily-weighted sector, tumbled 2.6 percent as gold slumped the most since mid-April and silver lost more than 4 percent. Kirkland Lake Gold Inc. (TSE:KGI) surrendered 6 percent to C$5.36 and Agnico Eagle Mines Ltd. (TSE:AEM) gave up 6.7 percent to C$31.89. Silver Standard Resources Inc. (TSE:SSO) lost 7.6 percent to C$7.59 and Endeavour Silver Corp. (TSE:EDR) slipped 4.9 percent to C$4.30.
Energy producers advanced 0.3 percent as crude rose to a two-week high. Athabasca Oil Corp. (TSE:ATH) gained 6.6 percent to C$7.58 and Trilogy Energy Corp. (TSE:TET) rallied 3.8 percent to C$32.14.
Financials, the main measure's most heavily-weighted sector, advanced 0.5 percent.
Canadian employment rose by 95,000 in May, the most since August 2002, and the jobless rate fell to 7.1 percent from 7.2 percent even as more Canadians joined the workforce, Statistics Canada said in Ottawa on Friday.
U.S. payrolls rose 175,000 last month after a revised 149,000 increase in April that was smaller than first estimated, Labor Department figures showed in Washington on Friday. The unemployment rate rose to 7.6 percent from 7.5 percent.
Barrick Gold Corp. (TSE:ABX), the world’s largest producer of gold, lost 4 percent to C$20.77. The Toronto, Ontario-based company is shedding dozens of workers from its Australian operations as it shuts down a local exploration unit and trims the workforce at one of its mines.
Major Drilling Group International Inc. (TSE:MDI), a metal and mineral exploration drilling company, lost 1.6 percent to C$7.31 after Salman downgraded the stock to "hold" from "buy" following fourth-quarter results earlier this week that missed firm’s outlook.
Teck Resources Ltd. (TSE:TCK.B), Canada’s largest diversified mining company, slid 3 percent to C$25.95 after Raymond James downgraded the stock to "market perform" from "outperform", saying it has lowered its met coal price forecasts.
Com Dev International Ltd. (TSE:CDV) added 5.4 percent to C$3.68 after saying second-quarter revenue climbed over 10 percent. Earnings totaled C$4.4 million, or 6 Canadian cents a share.
Valeant Pharmaceuticals International Inc. (TSE:VRX), Canada’s largest drug-maker, advanced 1.2 percent to C$85.85 after pulling out of a possible bid for a Serbian drug company in the wake of its $8.7 billion purchase of contact lenses maker Bausch & Lomb.
Catamaran Corp. (TSE:CCT), the provider of pharmacy benefits management services, jumped 3.2 percent to C$51.17. The Lisle, Illinois-based company said in a filing on Friday that it made a $100 million prepayment on a term loan on June 3. The company now owes $1 billion in the loan.
In the currency market, Canada’s dollar advanced for a second day against its U.S. peer after the economy added the most jobs in more than a decade in May and the unemployment rate declined. The loonie rose 0.5 percent to C$1.0217 per U.S. dollar at 11:47 a.m. in Toronto after gaining as much as 1 percent. One loonie buys 97.88 U.S. cents.
In commodities, gold futures for August delivery slipped 2.6 percent to $1,379.40 an ounce at 11:22 a.m. on the Comex in New York. That’s the biggest decline since April 15, when prices capped a two-day, 13 percent loss that was the biggest in three decades. Gold fell after employment in the U.S. increased more than forecast in May, boosting concern that the Federal Reserve may scale back monetary stimulus.
Silver futures for July delivery dropped 4.2 percent to $21.745 an ounce on the Comex, heading for the biggest drop since April 15.
In energy markets, oil for July delivery added 1.5 percent to $96.17 a barrel at 11:54 a.m. on the New York Mercantile Exchange after climbing to $96.39. Crude rose on bets demand for fuel will rise after U.S. employment gained more than forecast.