After surging to triple-digit gains early on in Thursday, the benchmark index of the Toronto Stock Exchange retreated throughout the day to close nearly flat.

The TSX/S&P composite index closed at 8,185.35, up 9.4 points, or 0.1%.

The energy group led the gains, advancing 3.3% on Thursday as oil futures soared sharply higher.

Crude oil for March delivery rose US$4.86, or 14%, to end at US$39.48 a barrel on the New York Mercantile Exchange. The boost followed a surprising report that U.S. oil inventories declined by 200,000 barrels last week.

Shares of Suncor Inc. surged $1.75, or 7.9%, to close at $23.95.

Husky Energy Inc. rose 4.4% to $28.06 and Imperial Oil Ltd. advanced a sharp 5.2% to $39.06.

Nexen Inc. saw its stock gain $0.72, or 4.6%, to close at $16.25.

The financials group ended the day flat.

Within the group, shares of Manulife Financial Corp. fell another 3.9% to $14.50. In the past two weeks, Manulife’s stock has lost 29% of its value.

Bank of Montreal shares dipped $0.60, or 2.3%, to close at $26.00.

Royal Bank of Canada was up 3.5%, to $27.93, and Laurentian Bank of Canada increased 3.6%, to $25.52.

The materials group fell almost 3% on Thursday as gold futures dipped lower. Gold for February delivery ended down US$1.60, or 0.2%, at US$976.10 an ounce on the Comex division of the New York Mercantile Exchange.

The subgold index tumbled 4.8%.

Yamana Gold Inc. shares dropped 6% to $11.31 and Barrick Gold Corp. fell 5.2% to $45.90.

Also lower was Kinross Gold Corp., down $1.56, or 6.4%, to $22.87.

Shares of Cameco Corp. tumbled 7.6% after the company announced late on Wednesday that it would issue up to $460 million in common stock to strengthen its capital position and allow it to take advantage of opportunities that may emerge from the current industry environment. The uranium producer’s shares closed at $17.66, down $1.46.

Higher for the day was First Quantum Minerals Ltd., up 5% to $33.40, and Potash Corp., higher by 1.6% to $104.23.

Junior companies on the TSX/S&P Venture composite index gave up early gains to finish down 13.72 points, or 1.5%, at 902.1.

The loonie slipped slightly lower, losing US0.07¢ to close at US79.41¢.

The main U.S. stock market indices declined on Thursday, weighed down by investor concerns about the ailing banking sector.

The Dow Jones industrial average slipped below 7,500 to its lowest level since October 2002. The blue-chip average shed 89.68 points, or 1.2%, to end at 7,465.95.

The S&P 500 gave up 9.48 points, or 1.2%, to close at 778.94.

The Nasdaq composite index fell 25.15 points, or 1.7%, to end at 1,442.82.