A plunge in oil prices slammed energy stocks on the Toronto Stock Exchange on Thursday, sending the benchmark index down more than 300 points.

The S&P/TSX composite index dropped 331.79 points, or 3.36%, to end the day at 9,555.41.

The energy group tumbled 6.75% after oil futures fell to their lowest level since March 2007. Crude for December delivery closed at US$61 a barrel, down US$4.30 or 6.58% on the New York Mercantile Exchange.

The plunge in the TSX energy group was led by Canadian Natural Resources Ltd., which fell 11.6% to $53.40. The drop came after the company reported that third quarter profit rose to $2.84 billion from $700 million in the same period last year. The company also announced Thursday that lower commodity prices are forcing it to temporarily shelve two expansions at its Horizon project.

Also down sharply were shares of Suncor Energy Inc., which fell 11.19% to $24.75.

The materials group faced a nosedive of its own on Thursday, falling 6.9% after gold futures continued their descent. Gold for December delivery fell US$9.10, or 1.23%, to end at $733.30 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index shed 6.5%.

Hit hard were shares of Barrick Gold Corp., down 6.34% to $27.50, and Goldcorp Inc., down 6.4% to $25.07.

Also ending the day lower were Agnico-Eagle Mines Ltd., down 6.45% to $35.68, and Teck Cominco Ltd., down 10.55% to $11.45.

The financials group moved lower by 0.38% on Thursday.

Shares of Manulife Financial Corp. slipped 1.74% to $25.35 after it reported that third quarter profit fell by half from the same period last year.

Shares of Canaccord Capital Inc. fell 9.29% to $5.76 after the company posted a third-quarter loss of $5.4 million, and suspended its dividend.

Shares of other financial companies moved higher, including ING Canada Inc., up 1.78% to $34.30, and Toronto-Dominion Bank, up 0.73% to $57.85.

The Canadian dollar shed more than a cent and a half against the greenback, ending the day at US83.92¢.

The junior S&P/TSX Venture composite index fell 31.29 points, or 3.29%, to close at 920.13.

In New York, a second day of declines sent American stocks into their largest two-day slump since 1987.

The Dow Jones industrial average plummeted 443.48 points, or 4.85%, to 8,695.79. The S&P 500 index fell 47.89 points, or 5%, to 904.9, putting its two-day loss at 10%. The Nasdaq composite index shed 72.94 points, or 4.34%, to finish the day at 1,608.70.

IE