Canadian market slightly down as inflation rate slows down

Canada's main stock market closed the week marginally lower, as a decelerated consumer price index (CPI) in March combined with losses in Health Care and Financial industries contributed to Friday's result.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite ticked down 11.28 points, or 0.07 percent to close the day at 15,614.28 points. Six of the ten sub-groups ended the session in negative territory.

Earlier in the day, Statistics Canada reported that the annual rate of inflation slowed down from 2.0 percent to 1.6 percent in March.

The drop surpassed the market expectation of a decrease to 1.8 percent. By category, two groups pulled the year-to-year rate down. Food slipped 1.9 percent, while clothing and footwear retreated 0.9 percent.

During the trading day, Health Care and Financial sectors were hit the hardest, slipping 1.15 percent and 0.46 percent, respectively.

The TSX Health Care group was pulled down by Quebec-based Valeant Pharmaceuticals International Inc, who announced that their SILIQ drug to treat plaque psoriasis would cost 3,500 U.S. dollars a month, nearly half the price of the cheapest competing treatment.

The drug is expected to launch in the United States in the second half of the year. Shares of the drugmakers dipped 4.42 percent to 11.45 Canadian dollars (8.48 U.S. dollars).

Financial stocks fell 0.46 percent as the country's two largest banks finished the week in the red. No. 1 ranked Royal Bank of Canada shares dipped 1.28 percent to 94.55 Canadian dollars (70.01 U.S. dollars), while No. 2 Toronto-Dominion Bank fell 0.62 percent to 65.63 Canadian dollars (48.60 U.S. dollars).

The group's losses were softened by lending firm Home Capital Group Inc posting strong unaudited first quarter earnings. Shares of the Toronto-based firm surged 8.70 percent to 19.25 Canadian dollars (14.25 U.S. dollars).

The remaining groups to finish the session lower were: Consumer Discretionary (0.28 percent), Materials (0.09 percent), Information Technology (0.08 percent), and Telecommunications (0.04 percent).

The energy group was one of the bright spots on the day, rising 0.73 percent despite the price of crude oil and natural gas both closing lower.

A barrel of Brent for delivered in June slipped 1.89 percent to 51.90 U.S. dollars, while May natural gas futures on the on the New York Mercantile Exchange retreated 1.87 percent to 3.096 U.S. dollars per million British thermal units.

Calgary-based energy firms Cenovus Energy Inc and ACR Resources Ltd were the top percentage gainers within the group, rising 2.38 percent and 1.71 percent, each. Meanwhile, shares of Suncor Energy Inc rose 0.71 percent to 40.94 Canadian dollars (30.32 U.S. dollars).

The remaining groups to end Friday's session ahead were: Consumer Staples (0.25 percent), Industrials (0.21 percent), and Utilities (0.04 percent).

The TSX Industrials group received a lift from engineering and construction firm SNC-Lavalin. Late Thursday, the Montreal-based firm announced the acquisition of British engineering firm WS Atkins plc for 3.6 billion Canadian dollars.

The deal, which would save 120 million Canadian dollars worth of savings through synergies, is expected to be completed by the third quarter of 2017. SNC-Lavalin shares closed at 54.27 Canadian dollars (40.19 U.S. dollars), a 2.30 percent ascent.

The Canadian dollar fell 0.18 cents to close the week at 0.7405 U.S. dollars. Endit