Toronto stocks fell sharply Monday as worries over growing fallout from the credit crisis rattled investor confidence.

The S&P/TSX composite index closed down 158.33 points, or 1.18%, at 13,288.96. Nine of the 10 main TSX groups ended lower.

The financials group was down 1.9% as the major Canadian banks get set to report quarterly results this week.

Bank of Nova Scotia and Bank of Montreal are set to kick off the round of reports on Tuesday. Scotiabank closed down 2% at $47.64, while BMO also slipped 2% to close at $44.06.

The energy and materials sectors fell 0.7% and 1.1%, respectively.

Suncor Energy dropped 1.7% to $59.32, while Inmet Mining fell 4.3% to $61.75.

Among individual stocks, Maple Leaf Foods sank to a record low after it expanded a recall of prepared meats associated with a food poisoning outbreak.

Maple Leaf shares closed down 10.2% at $8.80 after hitting a record low of $8.62 earlier in the day.

Precision Drilling fell 4.5% to $21.24 after it said it will buy U.S.-based Grey Wolf Inc in a $2 billion friendly cash and stock deal.

The junior S&P/TSX Venture composite index fell 11.62 points, or 0.60%, to 1,940.01.

The Canadian dollar slipped 0.21 of cent to finished at US95.16¢.

In New York, U.S. stocks fell sharply as credit concerns dogged financial stocks while technology and industrial shares fell on worries about the health of the global economy.

Credit Suisse cut American International Group’s price target and earnings estimate, while Lehman Brothers fell on speculation a bid by Korea Development Bank won’t happen.

The Dow Jones industrial average was down 241.73 points, or 2.08%, at 11,386.33. The S&P 500 was down 25.28 points, or 1.96%, at 1,266.92.

The tech-heavy Nasdaq composite index was down 49.12 points, or 2.03%, at 2,365.59.