By Fergal Smith
TORONTO (Reuters) - Canada's main stock index fell on Friday to its lowest level in more than three months as rising bond yields soured the mood of investors, particularly those invested in technology shares.
The Toronto Stock Exchange's S&P/TSX composite index ended down 62.89 points, or 0.3%, at 20,633.28, its lowest closing level since Jan. 27.
For the week, the index was down 0.6%. It was the sixth straight week of declines, the longest losing streak since 2014.
"We've got generally a risk-off tone across the world," said Greg Taylor, a portfolio manager at Purpose Investments.
A lot of selling has been focused on technology due to a "massive change in investor perception for what sectors are going to work," Taylor added.
Wall Street also ended lower amid concerns about the prospect of more Federal Reserve interest rate hikes after data showed stronger-than-expected U.S. jobs growth in April.
Canada's economy added less jobs than expected last month but the yield on its 10-year bond still climbed to an 11-year high of 3.088%.
Technology companies tend to be particularly sensitive to higher interest rates. That's because higher rates reduce the value to investors of the future cash flows that technology and other high-growth sectors are expected to produce.
For some technology companies, such as those in e-commerce, the prospect of slower revenue growth has also weighed on their shares.
E-commerce giant Shopify Inc fell 8.2%, adding to its sharp decline on Thursday when it reported results that missed estimates, while the technology sector ended 2% lower.
Consumer discretionary shares also lost ground, falling 0.8%. In contrast, energy ended with a modest gain, advancing 0.2% as oil prices climbed.
The Toronto market has a heavy weighting in energy, which has helped shield it from steeper declines this year.
(Reporting by Fergal Smith; Additional reporting by Sruthi Shankar in Bengaluru; Editing by David Gregorio)