Canadian market closes week marginally lower

Canada's main market closed the week slightly down, as declines in industrial and financial sectors overpowered gains from the Materials group.

Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite ticked down 12.67 points, or 0.08 percent to end the day at 15,537.88 points. Six of the ten sub-groups finished the session lower.

Industrials and Financial groups were the biggest drag during the session, falling 0.70 percent and 0.50 percent, respectively.

The TSX Industrials group was pulled down by Montreal-based Bombardier Inc after Metrolinx, the company responsible for Toronto's upcoming light rail project, placed an order for 61 vehicles from a competitor in the event that Bombardier is unable to fulfill their 770 million Canadian dollar deal. As a result of the news, shares of the plane and train maker dipped 4.07 percent to 2.12 Canadian dollars (1.55 U.S. dollars).

The country's largest airlines also contributed to the group's decline. Air Canada shares retreated 1.94 percent to 16.14 Canadian dollars (11.77 U.S. dollars) one day after closing at a 10-year low from news that they would be launching their own loyalty program by mid-2020.

Meanwhile, rival WestJet Airlines slid 4.23 percent to 21.98 Canadian dollars (16.03 U.S. dollars) after 62 percent of its pilots voted in favour of joining Air Line Pilots Association International, the world's largest pilot union.

Financial group continued its descent after U.S. credit ratings agency Moody's downgraded the ratings of the country's six largest banks on Thursday. Shares of all six finished in negative territory for a second straight session, with National Bank of Canada (0.66 percent) and Bank of Nova Scotia (0.65 percent) being hit the hardest.

The country's two largest insurance firms also had an impact, as Manulife Financial Corporation slipped 1.34 percent, while Sun Life Financial Inc finished 0.77 percent lower.

Meanwhile, alternative mortgage lending firm Home Capital Group Inc shares continued its volatile swings, plummeting 15.45 percent after releasing their first quarter results which saw more than 90 percent of deposits withdrawn.

Other groups to close Friday's session in negative territory were: Health Care (1.09 percent), Information Technology (0.63 percent), Consumer Discretionary (0.12 percent), and Energy (0.04 percent).

The Consumer Discretionary group, which consists of producers of non-essentials goods such as automobiles, apparel and entertainment, was pulled down after retailer Hudson Bay first quarter earnings fell below expectations. Shares of the oldest company in Canada slid 4.58 percent to close at 10.20 Canadian dollars (7.44 U.S. dollars).

Propelling the group up were two Montreal-based firms. Aimia Inc shares shot up 16.22 percent to 3.87 Canadian dollars (2.82 U.S. dollars) one day after plunging more than 60 percent due to Air Canada's intention to cut ties with Aeroplan, the firm's loyalty program. Meanwhile, online gambling firm Amaya Inc shares climbed 3.27 percent to 26.51 Canadian dollars (19.33 U.S. dollars) after reporting an 18.5 percent increase in earnings compared to the same quarter last year.

Not all groups finished behind, as materials led the way with a 1.01 percent increase. The group which is made up of producers of gold, precious metals, and raw materials, rose as the price of gold, silver and copper all rose. The spot price of an ounce of gold moved up 0.24 percent to 1,227.70 U.S. dollars, while the same weight of silver advanced 0.80 percent to 16.44 dollars. Copper closed 0.26 percent higher to finish at 2.5137 U.S. dollars a pound.

The remaining groups to close the week ahead were: Telecommunications (0.35 percent), Consumer Staples (0.19 percent), and Utilities (less than 0.01 percent).

The Canadian dollar ticked down 0.04 cents to close the week at 0.7292 U.S. dollars. Endit