Continued deterioration in commodity prices dragged down materials companies on Monday, pulling the Toronto Stock Exchange down nearly 300 points.

The S&P/TSX composite index dropped 291.85 points, or 3.2%, to finish at 8,793.33.

The materials group tumbled 6.4% as gold futures dipped lower. Gold for February delivery finished down US$34, or 4%, at US$821 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index fell 4.2%.

Shares of Goldcorp Inc. dropped $1.98, or 6.1%, to $30.40, and Barrick Gold Corp. shares dipped 3.1% to $37.99.

Agnico-Eagle Mines Ltd. saw its shares fall $2.77, or 4.7%, to close at $56.37.

Also down sharply was Potash Corp., lower by $11.20, or 11.1%, to $89.50, and Agrium Inc., down 8.1% to $38.84.

The energy group, also impacted by lower commodity prices, fell 4%. Crude for February delivery ended down US$3.24, or 7.9%, at US$37.59 a barrel on the New York Mercantile Exchange. In the past five sessions, crude futures have shed more than US$11, or 23%.

Actively traded shares in the group included Suncor Energy Inc., down 4.8% to $26.56, and Talisman Energy Inc., down 4.2% to $11.95.

Canadian Natural Resources Ltd. saw its stock fall 5.3% to $48.07 and Petro-Canada shares slid 3% to $29.14.

The financial group slipped 2.8% as all of Canada’s five biggest banks saw their shares fall.

Bank of Nova Scotia shares tumbled 5.2% to $31.27 and Royal Bank of Canada shares were off 2.9% to $35.74.

Toronto-Dominion Bank fell 2.5% to $44.87, Bank of Montreal dipped 2.3% to $32.81 and CIBC shares ended at $50.71, down 3.7%.

Also lower was Sun Life Financial Corp., down $1.34, or 4.6%, to $27.73.

Units in Atlantic Canada’s dominant telephone company Bell Aliant rose 0.7% to $24.00 after the company said it would cut 500 jobs, or 5% of its workforce, to streamline operations and improve its bottom line.

Shares of Thomson Reuters Corp. fell $1.55, or 5%, to end at $29.20.

Northstar Healthcare Inc., which owns and manages ambulatory surgery centres in the United States, saw its stock plunge 72% on the TSX, to finish at $0.79. The drop came after the company announced its 2008 and 2009 revenue and cash flow would likely be adversely affected by “difficulties with payments,” and that it would suspend dividends on common shares.

The TSX Venture exchange moved continuously lower throughout the day, finishing at 878.35 points, down 30.55, or 3.4%.

The Canadian dollar tumbled more than a cent and a half against the greenback on the slide in commodity prices. The loonie closed at US82.28¢, down US1.7¢,

Stock markets south of the border had a similarly dismal day, with stocks of financial companies hit the hardest.

The Dow Jones industrial average fell 125.21 points, or 1.5%, to 8,473.97.

Shares of Citigroup Inc. tumbled US$1.15, or 17%, to close at US$5.60 on the New York Stock Exchange, on continued reports that the company may sell control of its Smith Barney retail brokerage unit to Morgan Stanley.

The S&P 500 index closed down fell 20.09 points, or 2.3%, to 870.26.

The Nasdaq composite moved lower by 32.8 points, or 2.1%, to 1,538.79.

IE