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TSX ends down 0.9% at 22,781.43
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Posts 2.4% weekly decline
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Canada's unemployment rate rises to 6.6%
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Energy falls 1.5%; oil settles 2.1% lower
(Updates at market close)
By Fergal Smith
Sept 6 (Reuters) - Canada's main stock index fell to a
more than three-week low on Friday, weighed by declines in
technology and commodity-linked shares, as U.S. and Canadian
jobs data added to investor concerns about a slowdown in the
economy.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 206.85 points, or 0.9%, at 22,781.43, its
fourth straight day of declines and its lowest closing level
since Aug. 13.
For the week, the index lost 2.4%, its first weekly decline
in five weeks. Major U.S. indexes posted even steeper declines
on Friday.
"Investors are pricing in the reality of slower economic
growth," said Philip Petursson, chief investment strategist at
IG Wealth Management.
"You look at what's going on across the cyclical sectors,
whether it's energy, materials, industrials, consumer
discretionary, they're all down."
U.S. employment increased less than expected in August and
Canada's unemployment rate rose to 6.6%, its highest level in
more than seven years after excluding the pandemic years of 2020
and 2021.
"The (Canadian) economy isn't growing fast enough to absorb
the new labor entrants, and that's a concern," Petursson said.
The energy sector fell 1.5% as the price of oil extended its
recent declines, settling 2.1% lower at $67.67 a barrel.
Gold and copper prices also fell, weighing on
metal mining shares. The materials sector, which includes miners
and fertilizer companies, ended 2% lower.
Technology fell 1.7%, with shares of Celestica Inc ( CLS )
tumbling 10.2% to a seven-month low.
Enghouse Systems Ltd ( EGHSF ) was a bright spot. Shares of
the application software company climbed 5.6% on
better-than-expected quarterly earnings.
Japanese retail giant Seven & I Holdings ( SVNDF ) said it
had turned down Alimentation Couche-Tard's ( ANCTF ) $38.5
billion cash bid, rejecting an offer that would be the
largest-ever foreign buyout of a Japanese company.
Shares of Couche-Tard ended 1.9% higher.