Continued concerns about the dismal state of the global economy sent North American stock markets tumbling on Friday, leaving the main indices sharply lower for the week.

The S&P/TSX composite index plummeted 235.36 points, or 2.9%, to close at 7,949.99. For the week, the benchmark index shed 8.4%.

The decline was led by energy stocks, which dropped 5.1% as oil futures retreated. Crude oil for March delivery fell US$0.54 to end at US$38.94 a barrel on the New York Mercantile Exchange. Still, crude futures finished the week up US$1.43 from last Friday’s closing level of US$37.51.

Shares of Suncor Energy Inc. fell 7.5% to $22.15 and Canadian Natural Resources Ltd. declined 5.2% to $38.26.

Niko Resources Ltd. saw its shares fall $2.43, or 5.1%, to close at $45.32.

Also lower was Imperial Oil Ltd., down 3.9% to $37.55 and Husky Energy Inc., down 5.2% to $26.60.

Financial services stocks also took a hefty hit on Friday, dipping 5%.

Manulife Financial Corp. shares plunged $1.38, or 9.5%, to close at $13.12. Since last Friday’s close, Manulife shares have lost 25% of their value.

Kingsway Financial Services Inc. saw its shares tumble 7.9% after it reported a fourth-quarter loss of US$360.4 million. Kingsway shares closed at $2.90.

Shares in Fairfax Financial Holdings Ltd. dropped 5.3% despite news that the company recorded its biggest ever annual profit of US$1.47 billion. The company’s stock fell $19.51 to $352.00.

Also lower were Bank of Nova Scotia, off 5.8% to $24.83, and Bank of Montreal, by 5.2,% to $24.66.

The materials group edged higher by 1% on Friday as gold futures surpassed US$1,000 an ounce for the first time in almost a year. Gold for April delivery finished at US$1,002.20 an ounce, up US$25.70, or 2.6%, on the day.

The subgold index rose 3.2%.

Agnico-Eagle Mines Ltd. advanced $3.13, or 4.8%, to $68.46 and Kinross Gold Corp. rose 3.8% to $23.74.

Barrick Gold Corp. shares edged up 0.4% to $46.08 after the company reported a US$773-million goodwill writedown in the fourth quarter, leading to a loss of US$468 million.

Teck Cominco Ltd. shares shed 6.2% to $3.80 after reports that the miner would sell its 50% interest in the Hemlo gold operations in Ontario for US$65 million.

Shares in Tim Hortons Inc. jumped $2.33, or 8.2%, to $30.78 after the company announced an increase in its quarterly dividend to $0.10 per share.

The S&P/TSX Venture composite index shed 9.2 points, or 1%, to close at 892.9.

The Canadian dollar gained US0.63¢ against the greenback to end the week at US80.04¢.

U.S. stock markets continued to suffer, sending the Dow Jones industrial average to a low not seen since October 2002. The blue-chip average fell 100.28 points, or 1.3%, to end at 7,365.67. For the week, it lost 6.2%, marking its worst week since October.

The S&P 500 composite index shed 8.89 points, or 1.1%, to close at 770.05, off 6.9% for the week.

The Nasdaq composite index dropped 1.59 points, or 0.1%, to end at 1,441.23, giving it a weekly loss of 6.1%.