The Toronto stock market sagged Monday as renewed worries about a global credit crunch led to a selloff in financial stocks, offsetting gains in gold and energy issues.

The S&P/TSX composite index closed down 64.58 points, or 0.45%, at 14,231.28.

Financials led the market down, falling 0.9%, while eight of 10 TSX main groups moved lower.


Toronto-Dominion Bank was down 72¢, or 1%, at $72.08, while Royal Bank of Canada dipped 46¢, or 0.8%, to $55.54.

Record high oil prices failed to lift the market. The energy sector was ahead 0.4% as crude futures rose $2.44 to US$86.13 a barrel, topping US$86 for the first time.

Suncor Energy was up $1.10, or 1.1%, to $97.60 and Talisman Energy gained 19¢, or 1%, to $19.80.

The gold subindex rose 1.5%, as spot gold climbed to US$758.20 an ounce, pushed up by oil prices.

Centerra Gold was up 79¢, or 7.1%, to $11.99 and Kinross Gold rose 78¢, or 4.9%, to $16.73.


The junior S&P/TSX Venture composite index got a boost from the strong commodity prices, closing up 52.51 points, or 1.77%, to 13,984.80.

The Canadian dollar finished lower ahead of Tuesday’s Bank of Canada rate announcement. The central bank is expected to keep its key rate at 4.50%.


The loonie closed at US$1.0242, down US$1.0276, at Friday’s close.

In New York, stocks fell sharply after a gloomy outlook from Citigroup and news that U.S. banks were forming a fund to shore up the commercial paper market dashed investor hopes for a fast resolution to the credit crunch.

Citigroup’s chief financial officer said U.S. consumer credit will likely weaken this quarter after mortgage delinquencies accelerated.

The Dow Jones industrial average ended down 108.28 points, or 0.77%, at 13,984.80. The Standard & Poor’s 500 was down 13.09 points, or 0.84%, at 1,548.71. The Nasdaq composite index was down 25.63 points, or 0.91%, at 2,780.05.

Meanwhile, U.S. banks including Citigroup, Bank of America, and J.P. Morgan Chase said they were pooling funds to prevent investment funds from having to sell off billions of dollars of bonds linked to subprime mortgages and other debt.