Drop in crude oil price drags TSX down

Fri Sep 11, 2015 4:38pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index fell on Friday as energy shares tumbled alongside the price of oil after Goldman Sachs cut its crude forecast.

Investors were also looking ahead to next week's meeting of the U.S. Federal Reserve, which could prove pivotal if the central bank decides to raise interest rates for the first time in nearly a decade.

"We're in a frustrating period," said Michael Sprung, president at Sprung Investment Management. "Certainly there's a lot of unknowns" both domestically and globally, he said.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE lost 108.50 points, or 0.8 percent, to close at 13,461.39. It was off just 0.1 percent in the holiday-shortened week.

Seven of the TSX's 10 main groups fell, led by a 3.1 percent fall in the energy group.

The main catalyst was Goldman cutting its 2016 crude forecast due to oversupply and concerns about China's economy. [O/R]

U.S. crude CLc1 prices were down 2.5 percent to $44.78 a barrel, while Brent crude LCOc1 lost 1.5 percent to $48.15.

Oil companies were among the biggest drags on the index, with Suncor Energy Inc SU.TO down 2.7 percent at C$34.08 and Canadian Natural Resources Ltd CNQ.TO declining 3.8 percent to C$26.51.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch