Canadian market falls to 6-week low

Canada's main market closed Thursday at its lowest rate since March 22, as losses in energy and precious metal prices overshadowed gains in the IT sector.

Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite slipped 146.44 points, or 0.94 percent, to close the session at 15,396.70 points. Seven of the 10 sub-groups lost ground on the day.

The Energy and Material groups were by far the biggest laggard group during the session, dipping 2.98 percent and 2.32 percent, respectively

The TSX Energy group was hit the hardest, as the price of crude oil for July delivery slide 4.81 percent to 48.27 U.S. dollars a barrel after Organization of the Petroleum Exporting Countries (OPEC) delegates said that the cartel was unlikely to make bigger cuts to the production of crude oil.

Subsequently, shares of Calgary-based Baytex Energy Corp and Cenovus Energy Inc were hit with 6.54 percent and 4.88 percent drops. Canadian Natural Resources Limited dipped 4.21 percent despite posting a first quarter profit, compared to a loss with the same period the year before. Suncor Energy Inc, the largest producer of crude oil in Canada, also lost ground, falling 2.20 percent to 41.75 Canadian dollars (30.38 U.S. dollars).

The Material group, which is made up of producers of gold, precious metals and raw materials, closed lower for a fourth straight session, as the price of gold, silver and copper all finished with losses.

The spot price of an ounce of gold slumped 0.78 percent to a seven-week low of 1,228.00 U.S. dollars while the same weight of silver fell 0.91 percent to 16.30 dollars. Copper dropped 0.53 percent to close at 2.4985 U.S. dollars a pound.

Gold miners Yamana Gold Inc and B2Gold Corp shares took a beating, sliding 7.99 percent and 6.85 percent, respectively. Meanwhile, copper miners Ivanhoe Mines Ltd and Teck Resources Limited gave up 6.61 percent and 6.34 percent, each. Barrick Gold Corporation, the world' s largest producer of gold, saw moderate losses during the session, falling 1.03 percent to 22.01 Canadian dollars (16.01 U.S. dollars).

The remaining groups that finished the session in negative territory were: Utilities (0.38 percent), Financial (0.37 percent), Telecommunications (0.34 percent), Industrials (0.22 percent), and Health Care (0.15 percent).

The Financial group continued to be influenced by alternative mortgage lending firm Home Capital Group Inc, which dipped 12.13 percent to 6.01 Canadian dollars (4.37 U.S. dollars) after their regulatory meeting ended on Thursday and will resume in June. The Toronto-based firm is being accused by the Ontario Securities Commission of failing to disclose fraudulent activities to shareholders in their 2015 quarterly reports. Since April 19, share prices have dipped 73.07 percent.

The news was not all bad during the day, as Information Technology led a list of three groups to finish Thursday's session in positive territory.

The IT group jumped 0.89 percent after Toronto-based Constellation Software Inc jumped 3.98 percent to 686.39 Canadian dollars (499.42 U.S. dollars) a share. Waterloo-based Descartes Systems Group and Blackberry Limited also finished ahead, rising 0.70 percent and 0.16 percent, apiece.

Consumer Staples and Consumer Discretionary rounded out the list with gains of 0.25 percent and 0.11 percent, respectively.

The Canadian dollar fell 0.15 cents to close at a 14-month low of 0.7276 U.S. dollars. Endit