North American stock markets continued to build on the deep losses they incurred last week, tumbling steadily into negative territory during Monday’s trading session.

The S&P/TSX composite index plunged 302.32 points, or 3.8%, to close at 7,647.67, with all 10 main groups firmly lower for the day.

The energy group experienced the biggest drop, falling 5.4% as oil futures retreated. Crude for April delivery fell US$1.59 to end at US$38.44 a barrel on the New York Mercantile Exchange.

Shares of EnCana Corp. plummeted 7.2% to $44.78 and Canadian Natural Resources Ltd. tumbled 4.5% to $36.54.

Suncor Energy Inc. fell 3.8% to $21.32 and Nexen Inc. dropped 5.5% to $14.86.

The financials group dropped 3.6 % on Monday.

Fairfax Financial Ltd. shares dropped $30.47, or 8.7%, to close at $321.53.

Shares of Sun Life Financial Inc. fell 5.8% to $18.12 and Royal Bank of Canada retreated 4.6% to $25.82.

Also lower was Power Financial Corp., down $0.91, or 5.1%, to $17.03.

Materials companies on the TSX shed 3.5% on Monday. The group was weighed down by a retreat in gold mining stocks as gold futures dipped lower. Gold for February delivery ended down US$7.20, or 0.7%, at US$994.60 an ounce on the Comex division of the New York Mercantile Exchange.

The subgold index dipped 2.8%.

Barrick Gold Corp. fell 3% to $44.68 and Kinross Gold Corp. slipped 3.5% to $22.91.

Also sharply lower on Monday were fertilizer company stocks, including Potash Corp. of Saskatchewan, down 8.9% to $95.36 and Agrium Inc., lower by 8% to $45.98.

Investors applauded news from Nova Chemicals Corp. that the company had agreed to be bought out for US$2.3 billion by Abu Dhabi-based International Petroleum Investment Co. Nova Chemicals shares soared $4.83, or 291%, to close at $6.49.

Companies trading on the TSX Venture Exchange also declined, sending the S&P/TSX Venture composite index down 13.96 points, or 1.6%, to 878.94.

The loonie declined by US0.12¢ against the U.S. dollar, to close at US79.92¢.

South of the border, news that U.S. regulators would launch a revamped program to shore up troubled banks failed to inspire investor confidence. Concerns about the fate of the banking system sent the main indices sharply lower.

The Dow Jones industrial average plummeted 250.89 points, or 3.4%, to end at 7,114.78 — its lowest closing point since May 1997.

The S&P 500 ended down 26.72 points, or 3.5%, at 743.33.

The Nasdaq composite index fell 53.51 points, or 3.7%, to 1,387.72.