Roundup: Canadian stock market drops over energy selloff

Canada's main stock market in Toronto on Friday moved lower for the second day in a row as the falling oil prices triggered a big selloff in energy shares.

Toronto Stock Exchange's benchmark S&P/TSX Composite Index lost 89.73 points, or 0.61 percent, to 14,741.15 points.

Seven of the eight major sectors in TSX were seen in the losing streak with energy shares leading the decline by 1.77 percent, following a 1.08 percent slump Thursday. The energy sector as a whole dropped 2.1 percent amid the turbulence of the crude market this week.

The crude oil futures lost ground Friday to trade below 60 U.S. dollars per barrel again after a rally in midweek, with light, sweet crude for July delivery down 81 U.S. cents to settle at 59. 96 U.S. dollars a barrel on the New York Mercantile Exchange, after the output from the Organization of Petroleum Exporting Countries (OPEC) hit its highest level in almost 3 years Thursday, which triggered investors' concern about supply glut in future.

Friday witnessed a big selloff among most of Canada's energy giants. Canadian Natural Resources Ltd. shed 3.82 percent to 35.29 Canadian dollars (about 28.67 U.S. dollars), while Canadian Oil Sands Ltd. dropped 3.13 percent to 9.91 Canadian dollars per share.

Healthcare stocks also suffered a downturn by 1.02 percent as Canada's biggest drug maker Valeant Pharmaceuticals lost 4.71 Canadian dollars or 1.64 percent, to 282.25 Canadian dollars in its stock price.

Financials dropped 0.47 percent with Toronto-Dominion Bank down 1.03 percent to 54.01 Canadian dollars and the insurance giant Manulife Financial Corp. shed 0.71 percent to 23.63 Canadian dollars.

The real estate subsector dipped 0.21 percent when Brookfield Asset Management Inc. declined 1.29 percent to 42.86 Canadian dollars apiece.

"The vulnerability associated with household indebtedness is edging higher, and the overall risk to financial stability in Canada is slightly higher," Bank of Canada Governor Stephen Poloz warned Thursday.

According to the Teranet-National Bank Composite House Price Index Friday, Canadian home prices rose in May to a record high despite a drop in Calgary as weak oil prices continued to hurt demand in the country's energy heartland. And the index went up 0. 9 percent from the previous month, a fifth consecutive monthly increase.

Sue Chen, a real estate broker in Toronto, told Xinhua that housing markets in big cities including Toronto and Vancouver were stimulated by historically low mortgage rates.

Investors were speculating about the central bank's next interest rate decision amid the shattered oil patch and the rapidly-growing housing market.

The bank, however, continued with its expectation for an imbalances in the household sector and for the housing market to ease as the economy improves.

On the currency front, the Canadian dollar was trading lower Friday at 0.8123 U.S. dollar, from 0.8147 U.S. dollar Thursday. Endite