CANADA STOCKS-TSX drops over 1.5 pct as Fed statement stokes rate hike fears

Wed Jan 28, 2015 5:03pm EST
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* TSX down 231 points, or 1.56 percent, at 14,602.88

* Nine of 10 main index sectors decline

* AGF slips after reporting results

By John Tilak

TORONTO, Jan 28 (Reuters) - Canada's main stock index dropped over 1.5 percent on Wednesday after the Federal Reserve's comments about the U.S. economic recovery signaled to investors that the central bank was likely to raise interest rates as planned later this year.

The Fed said it will remain "patient" in deciding when to raise interest rates, and added U.S. economic growth was on track.

A further decline in oil prices amid concerns about a buildup in U.S. crude inventories hit shares of energy producers. U.S. oil prices shed more than 4 percent, and shares of oil and gas producers were 4.9 percent lower.

The market in recent days has had to process uncertainty over Greece's election results as well as sluggish economic data from China and the United States.

The Toronto Stock Exchange's S&P/TSX composite index ended down 231 points or 1.56 percent, at 14,602.88. Nine of the 10 main sectors on the index were in the red.   Continued...