TSX adds to weekly decline as economy sheds jobs

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, reported Reuters.

"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 and copper prices fell.

Oil 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.