A drop in financial stocks pulled the Toronto Stock Exchange lower on Friday, but not low enough to offset gains earlier in the week.

The S&P/TSX composite index fell 63.8 points, or 0.8%, to close at 8,123.02 on Friday. For the week, the benchmark index rose 2.2%.

The financials group dropped 3.3%.

Shares of Manulife Financial Corp. plummeted $1.28, or 9%, to close at $12.90.

CIBC shares tumbled 6% to $43.15 and Sun Life Financial Inc. fell 6% to $19.91.

Royal Bank of Canada shares dipped 3.1% to $30.92 and Power Financial Corp. slid 4.8% to $18.78.

The materials group remained flat during Friday’s trading, as gold futures also remained nearly unchanged. Gold for April delivery dipped US$0.10 to end at US$942.50 an ounce on the Comex division of the New York Mercantile Exchange. It fell US$60 for the week, but rose 7.4% for the month.

The sub-gold index advanced 1.2%.

Barrick Gold Corp. fell 2.3% to $38.45 while shares Agnico-Eagle Mines Ltd. advanced 3.6% to $63.95.

Kinross Gold Corp. shares dropped 4% to $20.12.

Iamgold Corp. shares surged 6.7% to $10.30 and Yamana Gold Inc. rose 2.7% to $11.12.

The energy group edged up 0.4% despite a dip in oil futures. Crude for April delivery dropped US$0.46, or 1%, to end at US$44.76 a barrel on the New York Mercantile Exchange.

Canadian Natural Resources Ltd. fell 1.8% to $40.90 while EnCana Corp. shares rose $1.32, or 2.7%, to end at $50.20.

Shares of Suncor Energy Inc. jumped 3.1% to $26.46.

The junior S&P/TSX Venture composite index failed to hang on to early-day gains, dipping 1.15 points, or 0.1%, to close at 861.66.

The loonie declined by US1.2¢ to close at US78.60¢.

In New York, U.S. stock markets tumbled after the Commerce Department reported that U.S. GDP shrank by 6.2% in the last three months of 2008.

The Dow Jones industrial average fell 119.15 points, or 1.7%, to finish at 7,062.93. The blue-chip index declined 4.1% for the week and 11.7% for the month.

The S&P 500 index shed 17.74 points, or 2.4%, to 735.09, leaving it with a weekly loss of 4.5% and a monthly hit of 11%.

The Nasdaq composite index fell 13.63 points, or 1%, to finish at 1,377.84, down 4.4% for the week and 6.7% for February.