The Toronto stock market finished a losing week with its final session in the red, as worries over the subprime mortgage market in the United States spooked equity investors.

The S&P/TSX composite index closed down 11.73 points, or 0.1%, to finish at 13,466.28.

The drop extended a plunge of 280 points booked during Thursday’s session. The index was down 250 points Friday morning, but it recovered toward the closing bell.

The Bank of Canada injected a total of $1.685 billion into the financial markets on Friday in a bid to calm investors, ease liquidity concerns, and bring the overnight rate down toward the bank’s target.

Six of the 10 TSX main groups declined, including the key financial services sector, which lost 0.33%.

CIBC fell $1.79 to $87.51. TD Bank dropped 62¢ to $67.36. Bank of Nova Scotia gave up 58¢ to $48.31.

Energy, industrials, health care and the resources-laden materials groups all finished in positive territory.


In New York, Blue-chip stocks slipped on Friday, while the broader market edged higher on Friday after the Federal Reserve moved to ease anxieties over looming losses related to subprime mortgages.

In an effort to calm the market, the Fed added cash to the banking system three times — US$38 billion in all — and issued a statement that it would provide sufficient funds to prevent disruptions.

The Dow Jones industrial average was down 31.14 points, or 0.23%, to end at 13,239.54. Earlier in the session, the Dow fell more than 200 points to a session low at 13,057.86.

The S&P 500 rose just 0.55 of a point, or 0.04%, to finish at 1,453.64. The Nasdaq composite index was down 11.60 points, or 0.45%, at 2,544.89. The Nasdaq had fallen as low as 2,503.16.

For the week, the Dow ended up 0.4%, the S&P rose 1.4% and the Nasdaq gained 1.3%.