(MENAFN- ProactiveInvestors) Canadian shares sank on Friday in the wake of the U.S. reviving worries about the health of global economy by keeping interest rates steady.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.9% at 13670.27 at 12:22 p.m. in Toronto. More than two shares declined for every issue that advanced as seven out of ten share groups were in negative territory.
The Fed left interest rates unchanged near zero driven by global economic risks and inflationary pressure.
The energy sector the main index's second most heavily weighted group was the largest laggard with a 2.1% drop.
Energy (U) Canada's largest oil sands producer fell 2.6% to $34.22.
Limited () Canada’s second-largest energy producer declined 2.9% to C$27.13.
Oil plunged on Friday as the U.S. warned on the health of global economy.
Brent crude was down $0.90 or about 2% at $49.90 a barrel. U.S. West Texas Intermediate (WTI) crude futures were trading at $46 a barrel down 2.9%.
The materials sub-index which includes mining shares surrendered 1.1% even as gold futures rose to a near three-week high on Friday.
(TSE:G) Canada’s largest gold miner by market value inched up 0.4% to C$17.87.
(TSE:ABX) fluctuated and was last up 0.7% at C$9.05. Canada’s second-largest gold miner will close its Salt Lake City Utah office by the end of November and dissolve a standalone copper unit to cut costs to help pare its debt.
() sank 9% to C$0.91 after the Canadian nickel and cobalt mining company suspended its dividend to trim operating costs and capital spending.
(TSE:K) jumped 5.6% to C$2.37 after Canada’s third-largest producer by revenue raised the lower end of its production outlook for the year.
Spot gold was up 0.7% at $1138.86 an ounce.
Financials the index's most heavily weighted sector gave back 1.1%. () which has the heaviest weighting in the index sank 2% to C$72.50.
Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value decreased 1.9% to C$51.63.
() wavered and was last up 0.5% at C$35.74 after striking a deal with to allow third-party sellers currently using the Amazon Webstore to migrate their businesses to a account.
In economic news Canada's annual inflation rate held steady at 1.3% in August as lower gasoline prices moderated the higher cost of food data showed on Friday. This bespeaks the has room to keep interest rates low.
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