The Toronto Stock Exchange succumbed to the global stock market selloff on Monday, dropping more than 5% after news that Canadian GDP contracted at an annual rate of 3.4% in the fourth quarter.

The S&P/TSX composite index dropped 435.51 points, or 5.4%, to close at 7,687.51. That’s its worst level since the fall of 2003

All 10 main groups finished the day in negative territory.

Energy stocks suffered a steep 8.3% decline after oil futures plunged more than 10%. Crude for April delivery ended at US$40.15 a barrel on the New York Mercantile Exchange, down US$4.61, or 10.3%. It was the biggest one-day percentage drop for a front-month contract since Jan. 7.

Canadian Natural Resources Ltd. saw its shares tumble $4.35, or 10.6%, to $36.55 and Nexen Inc. dropped 8.2% to $15.96.

Shares of Petro-Canada plunged $2.49, or 8.9%, to close at $25.59.

Suncor Energy Inc. dropped 10.2% to $23.75 and EnCana Corp. fell 6.2% to $47.07.

Gold futures also dipped lower on Monday. Gold for April delivery, the most active contract, fell US$2.50, or 0.3%, to close at US$940 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index fell 5.4%, while the materials group took a greater hit, falling 6.7%.

Goldcorp Inc. fell $2.12, or 5.7%, to $34.84 and Barrick Gold Corp. shed $2.15, or 5.6%, to close at $36.30.

Agnico-Eagle Mines Ltd. dropped 6.6% to $59.73 and Yamana Gold Inc. slipped 8.5% to $10.18.

Fertilizer companies also took a hefty hit, with Agrium Inc. down $5.69, or 12.9%, to $38.48 and Potash Corp. lower by $9.98, or 9.4%, to $96.80.

The financials group fell 4.5%, dragged down by negative financial industry sentiment south of the border after insurance giant AIG reported a record quarterly loss of US$61.7 billion.

Manulife Financial Corp. shed $1.32, or 10.2%, to $11.58 and CIBC dropped $2.90, or 6.7%, to $40.25.

Bank of Nova Scotia shares fell 5.9% to $27.03 and Bank of Montreal dipped 4.6% to $26.99.

Also lower was Sun Life Financial Corp., down $0.98, or 4.9%, to $18.93.

Junior companies took a hit of their own, sending the S&P/TSX Venture composite index down 33.42 points, or 3.9%, to close at 828.24.

The Canadian dollar dropped by US1.16¢ to close at US77.44¢.

In New York, stock markets added to the steep losses incurred last week.

The Dow Jones industrial average fell 299.64 points, or 4.2%, to finish at 6,763.29, it’s lowest level since April 1997.

The S&P 500 index shed 34.27 points, or 4.7%, to finish at 700.82.

The Nasdaq composite index fell 54.99 points, or 4%, to 1,322.85.

IE