FINANCIAL MARKETS

Canada’s main stock index shed nearly 100 points on the final trading day of the week in a broad-based decline.

The S&P/TSX composite index closed down 81.31 points at 14,952.33.

“Resource stocks in Canada are selling off today because a higher dollar negates the rise in the commodity price,” said Norman Levine, managing director of Portfolio Management Corp.

The loonie recorded its third consecutive day of gains, trading at an average price of 79.45 cents US, up 0.38 of a U.S. cent.

It’s risen 1.05 of a U.S. cent since Tuesday’s daily average price of 78.40 cents US.

The loonie rallied Friday following news that the country’s annual inflation rate accelerated in July for the first time since January. Last month, the yearover-year inflation rate rose to 1.2 per cent and the rise reinforced notions that the Bank of Canada will once again hike its benchmark interest rate in the fall.

The strengthened loonie prompted a sell off in resources stocks, said Levine, explaining commodities are priced in U.S. dollars.

Shares in the global gold and the energy sector slid, despite a boost in the price of oil.

The October crude contract gained US$1.42 cents to US$48.66 per barrel.

The commodity got a lift from a lower U.S. rig count. Figures released Friday showed the number of rigs exploring for oil and natural gas in America decreased by three this week to 946.