The Toronto stock market plunged on Friday, as lower commodity prices and ongoing concerns over global mortgage and credit markets dragged Canadian equities lower.

The S&P/TSX composite index closed down 248.38 points, or 1.8%, at 13,565.24.

After a volatile week, the benchmark index hovers near its June lows. It gave up 1.3% in the week and swung in a wide range of more than 500 points.

All 10 TSX main groups sectors were lower, led by energy, materials, industrials and telecoms, which was dragged down by Telus, which fell $2.90, or 4.8%, at $57.50.

Telus today reported its quarterly profit sank 29%.

Commodity prices fell across the board, including oil, natural gas, nickel and copper.

The energy sector fell 0.4% as the September crude oil contract on the New York Mercantile Exchange declined $1.38 to US$75.48 a barrel, down 2% on the week.

Among oil and gas producers, Petro-Canada retreated $2.53, or 4.4%, to $54.68 while Canadian Natural Resources gave up $2.16, or nearly 3%, to close at $70.84.

Teck Cominco was down $1.80, or 3.9%, at $44.51.

The financials group was hit hard by the global subprime mortgage and credit worries, sliding 1.8%.

Manulife Financial fell 90¢, or 2.3%, to $38.66, while Royal Bank of Canada sank $1.35, or 2.5%, to $53.50.

The junior S&P/TSX Venture composite index dipped 23.28 points to 3,081.54.

The Canadian dollar slipped 0.1 of a cent to US94.83¢.

In New York, stocks slid sharply after Bear Stearns said credit markets were in their worst shape in two decades, while U.S. jobs data aroused further concerns about weakness in the economy.

Standard & Poor’s lowered its outlook on Bear Stearns’ debt to “negative”, saying the biggest U.S. underwriter of mortgage bonds may have problems, that could hurt the firm.

The Dow Jones industrial average tumbled 281.42 points, or 2.09%, to 13,181.91. Every one of the Dow’s 30 components ended the day in the red.

The S&P 500 dropped 39.14 points, or 2.66%, to 1,433.06. The Nasdaq composite index sank 64.73 points, or 2.51%, to 2,511.25.

For the week, the Dow fell 0.7%, while the S&P 500 shed 1.8% and the Nasdaq lost 2%.