Canada Shares Volatile as Jobless Rate Hikes in May

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Canada Shares Volatile as Jobless Rate Hikes in May

Stocks in Canada fluctuated on data that the country’s unemployment rate increased in May, the first hike this year.

Air Canada added 5.4% after National Bank Financial upgraded the airline’s rating. Major Drilling Group International Inc plunged 9.9% after reporting lower-than-expected revenues for the last quarter.

The Standard & Poor’s 500 of Canada or TSX Composite Index added 27.45 points or 0.2% to 14, 827 as of 12:05 pm in Toronto after retreating 0.1% earlier. The blue-chip needs to add less than 300 points to hit an all-time peak.

Joblessness advanced to 7% from 6.9% as full-time positions lost 29,100 in May, according to data from Statistics Canada. Part-time jobs added 54,000. Only part-time work has seen gains in the last 12 months.

Chief investment officer of Toronto-based NexGen Financial Corp Jeff Young told Bloomberg that lack of lasting jobs was hurting the economy.

“There’s growth in the service industries but those tend to be lower-paying and part-time jobs. You need to get more into the information economy-type jobs. This is a big picture problem,” said Young.

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Analyst Cameron Doerksen of National bank wrote in a note that two most dominant carriers in Canada will be boosted by steadying fares for local flights, pushing Air Canada’s stock to 10.47 Canadian dollars. WestJet Airlines Ltd added 2.1% to C$26.20.

Major Drilling posted revenue of C$82.6 million for the fourth quarter, while analysts had expected C$90.2 million. The stock dropped to C$7.56.

Tech Resources Ltd plunged 2.3% to C$23.51 after it announced on Thursday that its Alaska arm would not construct a proposed pipeline, which is 52-mile long, to dispose dirty water from its mine in Red Dog.

According to MSN, the country’s financial sector, which is most heavily weighted, edged higher. Toronto Dominion Bank added 0.4% to C$23.55. The materials sector was down, including miners.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com