A broad-based decline on the Toronto Stock Exchange sent the composite index down more than 4% on Monday, as a more pessimistic economic outlook from the World Bank hampered investor confidence.

The S&P/TSX composite index tumbled 453.77 points, or 4.4%, to close at 9,834.18, as all 10 main groups on the TSX retreated. Earlier on Monday, the World Bank said it expects the global economy to shrink by 2.9% this year, down sharply from the 1.7% contraction predicted in March.

The energy group on the TSX led the drop, plummeting 6.5% as oil futures retreated. On the New York Mercantile Exchange, July crude futures dropped US$2.62, or 3.8%, to US$66.93 a barrel.

Shares of Suncor Energy Inc. dropped $3.03, or 8.6%, to $32.19, and Canadian Natural Resources Ltd. tumbled 7.2% to $54.69.

Talisman Energy Inc. finished down 6.6% to $15.65, while Husky Energy Inc. fell 6.1% to $30.35.

Also sharply lower was Petro-Canada, off $3.64, or 8.2%, to close at $40.78.

Materials stocks fell 6% on Monday, while the sub-gold index dropped 5.5% on lower gold futures. On the Comex division of the New York Mercantile Exchange, gold for August delivery fell US$15.20, or 1.6%, to end at US$921 an ounce.

Shares of Teck Resources Ltd. plunged $2.07, or 11%, to $16.76.

Barrick Gold Corp. dropped 5.1% to $36.68 and Goldcorp Inc. finished down 4.9% at $37.61.

Shares of Agnico Eagle Mines Ltd. shed $$3.71, or 6.2%, to end at $56.27.

The financials group dropped 3.5% on Monday.

Shares of Manulife Financial Corp. tumbled 12.2% after the insurer announced late on Friday that the Ontario Securities Commission is investigating whether Manulife failed to advise clients on risks related to its segregated fund products. Manulife shares fell $2.83 to $20.42.

Also down sharply were shares of Sun Life Financial Inc., down 6.4% to $29.85.

Power Corp. dropped 7% to $24.16 and Toronto-Dominion Bank fell 2.1% to $56.99.

Hefty losses among junior stocks sent the S&P/TSX Venture composite index down 40.14 points, or 3.6%, to 1,078.66.

The Canadian dollar also tumbled on Monday, falling by US1.34¢ to close at US86.76¢.

The major stock market indexes south of the border also fell sharply lower during Monday’s trading as investors processed the World Bank’s revised forecast for global growth.

The Dow Jones industrial average dropped 200.72 points, or 2.4%, to close at 8,339.01.

For the Dow, it was the biggest point and percentage drop in two months, and the lowest close since May 27.

The S&P 500 shed 28.19 points, or 3.1%, to 893.04, leaving it in negative territory for the year so far.

The Nasdaq composite index declined 61.28 points, or 3.4%, to end at 1,766.19.

IE