TORONTO, Sept 18 (Reuters) - Canada's main stock index
dropped sharply on Friday after the U.S. Federal Reserve revived
concerns about global economic growth as it kept interest rates
steady, sparking declines in the prices of oil and copper.
Global economic risks and about inflationary pressure
prompted the Fed to push back its plans to raise interest rates.
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After hitting a two-week high in the previous session, the
benchmark Canadian equities index moved sharply lower to reflect
its exposure to oil and copper stocks.
"The Fed is taking a conservative approach and they're going
to take their time now," said Benoit Gervais, senior vice
president and portfolio manager at Mackenzie Investments.
He said the energy sector would have to engage in cost and
job cuts in order to counter the lower oil price environment.
"The current state of affairs is unsustainable for oil
companies," he added.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was down 173.44 points, or 1.26 percent, at 13,613.72.
Nine of the 10 main sectors on the index were lower.
The energy sector slumped 2.4 percent. Suncor Energy Inc
SU.TO dropped 2.3 percent to C$34.31, and Canadian Natural
Resources Ltd CNQ.TO declined 2.7 percent to C$27.20.
In the mining sector, First Quantum Minerals Ltd FM.TO
fell 5.5 percent to C$7.17 and Teck Resources Ltd TCKb.TO lost
2.2 percent to C$8.52.
Financials, the index's most heavily weighted sector,
slipped 1.1 percent. Bank of Nova Scotia BNS.TO gave back 1.6
percent to C$58.21.